Interview: 'ING RED isn't dead: it's downsizing'

The international real estate development arm of Dutch banking group ING is gearing up for an i'ntensive phase' in its existence, unit CEO Hein Brand told PropertyEU Magazine.

ING RED is not dead, he maintained: it is gearing up for an intensive period of three to eight years whereby the end-result will determine the success of the operation. 'Liquidation? That's not on the cards,' Brand insisted.

Brand pointed out that a significant number of staff are still working on no less than 226 different development projects both in The Hague and elsewhere in Europe. Following writedowns, these projects still represent a value of EUR 3.3 bn, with EUR 1 bn still in the pipeline.

Meanwhile CB Richard Ellis Investors (CBREI) is frontrunner to acquire ING REIM in a EUR 1 bn deal, according to well-informed sources.
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.

CBREI declined to comment when contacted by PropertyEU.

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. While the real estate investment and development units will be hived off or dismantled, ING is committed to retaining a presence in property financing.

The full interview with Hein Brand appears in the February edition of PropertyEU Magazine. Click on the link below to subscribe.