ING has reached agreement to sell the majority of its ING Real Estate Investment Management business (ING REIM) in two separate transactions for a combined price of approximately USD1bn (€770m). As part of the overall transactions, ING has also agreed to sell up to approximately USD100m of its equity interest in existing ING REIM funds.
ING has entered into an agreement with CB Richard Ellis Group, Inc., to sell ING REIM Europe, ING REIM Asia and Clarion Real Estate Securities (CRES), ING REIM’s US-based manager of listed real estate securities, as well as part of ING’s equity interests in funds managed by these businesses. The proceeds for these REIM businesses and the equity interests amount to approximately $1bn.
ING REIM Europe, ING REIM Asia and CRES combined have €44.7bn in assets under management as of 31 December 2010.
In a separate transaction, ING has agreed to sell the private market real estate investment manager of its US operations, Clarion Partners, to Clarion Partners management in partnership with Lightyear Capital LLC for $100m.
ING Real Estate Development and ING Real Estate Finance are not impacted by the transactions disclosed in today’s announcement and will continue to be part of ING Bank.
Both transactions are expected to close in the second half of 2011.