CB Richard Ellis, the US-listed property services firm, has emerged as favourite to acquire the majority of ING’s real estate group in deal worth one billion euro (USD 1.35 billion) to create the world’s largest property funds business, says a media report.
CBRE Investors manages direct real estate investments for separate accounts and closed-end vehicles as well as real estate debt and real estate-related debt securities across 20 offices in North America, Europe, Asia, including India, Australia and the Middle East.
Attributing to sources, the Financial Times reported that CBRE, with 29,000 staff and more than 300 offices worldwide, is the frontrunner to buy ING Real Estate Investment Management platform in a deal valued at about one billion euro.
The deal will create the world’s largest property funds business with more than USD 100 billion under management, the report noted. Final terms are expected to be agreed in the next few weeks, it added. Other bidding parties included Vornado Realty Trust, the US real estate investment trust, and Jones Lang LaSalle, a rival property services group, the daily pointed out.
ING, the Dutch pension company, has been in exclusive negotiations over the past two weeks to sell the business, which has more than 65 billion euro of assets under management across the world. However, it is not known whether the talks will result in the sale of all or the majority of the business.
CB Richard Ellis is being advised by Bank of America Merrill Lynch; ING is being advised by Morgan Stanley. ING Real Estate Investment Management, part of ING Group, has been considering offers for the business over the past year, as it seeks to raise funds from the sale of non-core businesses. According to the publication, the two companies declined to comment.
