Richard Ellis has completed its takeover of ING Clarion Real Estate Securities (CRES) from Netherlands-based ING Group, the firm announced today.
The completion of the platform, which had $20.5 billion of listed securities under management as of 31 March, precedes the Los Angeles property group’s wider acquisition of the majority of ING’s Real Estate Investment Management (REIM) operations in Europe and Asia.
The bigger transaction, scheduled to close later this year, would see it become the biggest property fund manager in the world with combined assets under management of almost $100 million. Including $2.4 billion of real estate securities assets, its existing real estate investment management business, CBRE Investors, had $37.9 billion under management as of 31 March.
The newly acquired global listed securities business will operate as CBRE Clarion Securities, and will be based in Radnor, Pennsylvania, while the European headquarters of the new business will be located in The Hague, Netherlands, where ING REIM currently is based. Ritson Ferguson, currently CEO of ING Clarion Real Estate Securities, will become global head of the enlarged securities business.
As part of the CRES transaction, Richard Ellis has bought $59 million of CRES co-investments from ING REIM as part of the transaction.
The total purchase price for both the ING REIM AND CRES businesses is expected to be $940 million. Richard Ellis will finance the acquisitions with a combination of cash and borrowings under its secured credit facility. The company raised $800 million of new bank debt for this purpose in March.
CBRE Investors global president Matt Khourie said in a statement the acquisition “sharply expands the spectrum of indirect real estate investment vehicles” the firm offers investors.