ING talking to 'several parties' about REIM sale

Dutch financial group ING has said that it is in discussions with 'several parties on a possible sale of parts' of ING Real Estate Investment Management. These discussions, it said, are taking place within the context of an evaluation of the position of the property fund management business within ING's banking business.

In a short statement, ING added: 'These contacts may or may not lead to one or more transactions. Any speculation on scope, pricing and conditions of possible transactions would be premature.'

ING was reacting to news reports that CB Richard Ellis Investors (CBREI) is the last remaining bidder to acquire ING REIM in a EUR 1 bn deal. CBREI declined to comment when contacted by PropertyEU.

The Financial Times reported that the investment arm of property adviser CBRE is in talks with banking and insurance group ING to acquire its real estate investment management business for about EUR 1 bn. A final agreement is anticipated within weeks, the paper said.

ING REIM has about EUR 65 bn of assets under management and is the largest property fund manager in the world and the second largest in Europe after AXA REIM (EUR 39 bn AUM). CBRE has about EUR 27 bn of assets under management so a combination with ING REIM create a giant with over EUR 90 bn AUM.

ING Group is undergoing a root-and-branch reorganisation in response to the financial crisis which will drastically reduce its exposure to real estate. This back-to-basics operation will result in the splitting up of the bank and insurance divisions and likely lead to the sale of ING REIM and the dismantling of the development arm. ING is to remain active in property financing.