02.11.11
CBRE Group, Inc. (NYSE:CBG) today announced that it has completed the acquisition of ING Group N.V.’s real estate investment management (ING REIM) operations in Europe. The ING REIM operations in Europe – including the ING Real Estate Select global fund of funds business – are being merged with CBRE Group’s existing real estate investment management business, and the combined entity (including the ING REIM Asia operations acquired on October 3, 2011) will operate as CBRE Global Investors, headquartered in Los Angeles.
“With the ING REIM Europe acquisition, we have completed the most transformative transaction in our industry since our purchase of Trammell Crow Company in 2006,” said Brett White, chief executive officer of CBRE. “Our expanded investment management business will enhance our service offerings for institutional investors in commercial real estate, and provide us with another source of stable revenues.”
CBRE Global Investors now has more than 1,100 employees in 21 countries, serves over 600 institutional clients worldwide, and offers a comprehensive range of real estate investment programs positioned along the risk/return spectrum. CBRE Global Investors is led by Matt Khourie, Global President, and a highly experienced executive team, comprised of senior executives of both CBRE Investors and ING REIM. These include Pieter Hendrikse, who has been appointed CEO of the EMEA operation; Richard Price, who serves as CEO of the Asia Pacific operations; T. Ritson Ferguson, who serves as CEO of the global securities business; and Jeremy Plummer, who serves as CEO of the combined global multi-manager business.
“Completion of the ING REIM acquisition is a significant milestone for our firm,” said Mr. Khourie. “With the ING REIM talent and resources we’ve added globally – coupled with our research-based approach to real estate investment – we can offer clients an expanded global platform to meet their investment objectives in key markets across the world.”
“CBRE Global Investors provides an ideal platform from which to serve our clients,” said Mr. Hendrikse. “We are now an integral part of the world’s leading commercial real estate organization, which enables us to bring a deeper and richer understanding of local market dynamics to our investment strategies and day-to-day decision-making. This will greatly benefit our investor clients.”
With the acquisition of ING REIM’s Europe and Asia operations and its global real estate securities business, which closed on July 1, 2011, CBRE Global Investors’ assets under management now totals approximately $94.8 billion1 on a combined pro forma basis, as of September 30, 2011.
The total purchase price for the three ING businesses is up to approximately $900 million (including up to approximately $540 million for ING REIM Europe). As part of the transaction that closed today, over the next several months, CBRE will also acquire up to approximately $75 million of real estate co-investments managed by ING REIM in Europe. This is in addition to co-investments of approximately $75 million acquired as part of the ING REIM Asia and ING Clarion Real Estate Securities transactions. As previously announced, CBRE also expects to incur financing, integration and retention costs totaling approximately $150 million. CBRE financed the acquisition with a combination of cash on hand and borrowings under its secured credit facility, including $800 million of bank debt raised specifically for this purpose in March 2011.
CBRE will host a conference call to discuss the ING REIM acquisition with members of the investment community on Tuesday, November 1, 2011 at 5:00 pm ET. A live webcast will be available through the Investor Relations section of CBRE’s Web site at www.cbre.com.