ING restructures real estate business

ING Real Estate Investment Management is to be placed under a new global investment management organisation which Dutch financial giant ING is creating as part of a major restructuring of the entire group.

Under the new plan, the group's real estate development arm will also manage down its capital exposure and will become part of a new commercial bank division, as will ING Real Estate Finance. Up to now, ING RE has included investment management, finance and development operations.

In an exclusive interview with PropertyEU's Dutch sister publication, PropertyNL, CEO Jan Hommen confirmed on Thursday that the real estate business will continue to be at the centre of ING's business focus. Hommen did not rule out the disposal of part of the real estate business as part of a plan announced earlier to offload 10 to 15 units within the ING Group. Over time ING intends to divest EUR 6 to 8 bn in non-core activities 'as market conditions permit'.

Hommen declined to give further information on the restructuring plans for the group's property development arm, but was very positive about the decision to bring together ING REIM with the group's other asset management activities. According to Hommen, this would increase possibilities for investment on a global basis. Last month, ING RE's CEO George Jautze said in an interview with PropertyEU that the company is reporting new property asset management mandates from institutional investors.

The re-organisation of the group will bring ING back to basics, Hommen said. ING will operate the Bank and Insurer operations separately under one group umbrella. The bank will be predominantly focused on Europe with selective growth options elsewhere. It will have one integrated balance sheet and one management team, according to Hommen.

More information on ING RE's restructuring is to be found in PropertyEU's Week Edition published on Wednesday. Click on the link below to subscribe