The world largest commercial property broker is acquiring the majority ING Group NV’s real estate investment management unit for just about $940 million — cash. The Dutch financial institutions that offers insurance, banking, and asset management agrees to sell the majority if its real estate management business to the commercial property broker — CB Richard Ellis Group to reduce property-linked risk and pay down debts, according to a report.
In December 2010, ING also sold its stakes in Fubon Financial Holding. The sale is inline with its goal to reduce the property-linked risk and lessen non-core investments. ING has a total of 5% stakes at Fubon Financial.
CB Richards’s transaction with ING Group includes ING’s REIM business in Asia and Europe, with about 44.7 billion euros or US$60.5 billion asset under management.
The commercial property broker will also include Clarion Real Estate Securities, as part of the transaction.
Clarion Real Estate Securities is ING’s international real estate listed securities company. In a separate deal, Clarion Partners, the U.S based private equity real estate firm, was sold to Clarion Partners management backed by another US-based private equity firm Lightyear Capital for about $100 million.
CB Richard will be acquiring Clarion Real Estate Securities’ $55 million worth of co-investments and interest.
According a statement from the Chief Executive Officer for ING, Jan Hommen, the bank’s recent transaction with the commercial property broker — CB Richard is in accordance with its strategic goals of reducing risk exposure to real estate.
The transaction between ING and the commercial property broker — CB Richard Ellis Group is expected to close within the second half of this year.