Los Angeles, CA, October 31, 2011 — 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.
The direct dial-in number for the conference call is (800) 230-1766 (in the U.S.) and (612) 332-0226 (for international callers). A replay of the call will be available beginning at 7:00 pm ET on November 1, 2011 until 3:00 a.m. ET on November 9, 2011. The dial-in number for the replay is (800) 475-6701 (in the U.S.) and (320) 365-3844 (for international callers). The access code for the replay is 222429. A transcript of the call will be available on CBRE’s Investor Relations Web site.
About CBRE Group
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site atwww.cbre.com.
1 Assets under management (AUM) refers to current fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors' presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers. CBRE Global Investors changed its calculation of AUM with the ING REIM acquisition. The change in methodology has not had a material impact on its AUM calculation. The new methodology has been used to derive pro forma combined AUM as of September 30, 2011.
“Safe Harbor” Statement Under the U.S. Private Securities Litigation Reform Act of 1995:
Certain of the statements in this release regarding the acquisition of the real estate investment management operations of ING Group N.V. that do not concern purely historical data are forward-looking statements within the meaning of the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including, but not limited to, the successful integration of ING Real Estate Investment Management – Europe with CBRE’s existing real estate investment management business, our ability to leverage the integrated platform to capture a larger share of the real estate investment market in Europe, and the projected performance and potential risks, liabilities and transaction costs relating to ING Real Estate Investment Management – Europe relative to the price agreed to be paid for the business, as well as other risks and uncertainties discussed in CBRE’s filings with the U.S. Securities and Exchange Commission (SEC). Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable securities laws, CBRE expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If CBRE does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. For additional information concerning factors that may cause actual results to differ from those anticipated in the forward-looking statements, and risks to CBRE’s business in general, please refer to the Company’s SEC filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2010 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2011. Such filings are available publicly and may be obtained off the Company's website at www.cbre.com or upon request from the CBRE Investor Relations Department at email@example.com.