ING is selling its ING Real Estate Investment Management business for $1 billion to CB Richard Ellis, including up to $100 million of its equity interest in the ING Real Estate funds, confirmed Victorina de Boer, ING spokeswoman, in an e-mail.
ING is selling three businesses to CB Richard Ellis — ING REIM Europe, ING REIM Asia and Clarion Real Estate Securities, its U.S.-based listed real estate securities subsidiary — for $940 million. ING also is selling to CBRE a portion of its limited partnership interests in the funds, amounting to about $100 million. However, ING continues to invest in the funds through its bank and insurance units, Ms. de Boer noted.
Matt Khourie, CEO of CBRE Investors, the investment management arm of CB Richard Ellis, said in an interview, that ING will continue to hold onto the majority of its co-investments in the funds.
“The three businesses were a better fit for rounding out our global real estate platform,” Mr. Khourie said. He said he expects the management teams will stay in place.
ING also is selling ING Clarion Partners for about $100 million to Clarion's management and private equity firm Lightyear Capital LLC. Don Marron, CEO and chairman said Lightyear would own a majority. ING will continue to hold stakes in Clarion funds, he said.
Executives at Lightyear, which invests only in financial services firms, had wanted to buy an asset management firm for a while, he said. “(Clarion Partners) is good diverse business at a time we think will be good time to be in commercial real estate,” he said.
ING's Ms. de Boer noted “the bank will monetize its stakes (in all the funds) over time as it continues to reduce its exposure to real estate.”
The transactions are expected to close in the second half of this year.