Acquisition of ING’s Real Estate Investment Management Businesses in Europe and Asia Remains on Target to Close Later this Year
Los Angeles, CA – July 4, 2011 – (RealEstateRama) — CB Richard Ellis Group, Inc. (NYSE:CBG) today announced that it has completed the acquisition of ING Clarion Real Estate Securities (CRES) from Netherlands-based ING Group N.V. (ING). CB Richard Ellis’ acquisition of substantially all of ING’s Real Estate Investment Management (REIM) operations in Europe and Asia remains on schedule to close later this year. The total purchase price for the ING CRES and REIM businesses is approximately $940 million.
The newly acquired global listed securities business will operate as CBRE Clarion Securities, and will be part of CB Richard Ellis Investors, the Company’s Global Investment Management business segment.
“We are very pleased to add Clarion Securities’ premier global listed securities programs to our comprehensive suite of investment offerings,” said Matt Khourie, Global President of CB Richard Ellis Investors. “This move sharply expands the spectrum of indirect real estate investment vehicles we offer investors and brings a talented team of securities-focused investment professionals to our company.”
“We are thrilled to join CB Richard Ellis Investors,” said Ritson Ferguson, CEO of CBRE Clarion Securities. “We are excited to be part of the world’s pre-eminent commercial real estate services firm. This provides an excellent foundation from which to serve our clients and furthers our goal of delivering the best possible results for them over the long term.”
The ING CRES portfolio of listed securities totaled approximately $20.5 billion of assets under management as of March 31, 2011. CBRE Investors had $37.9 billion of total assets under management as of March 31, 2011, including $2.4 billion of listed real estate securities.
As part of the CRES transaction, CB Richard Ellis has also acquired approximately $59 million of CRES co-investments from ING. CB Richard Ellis will finance the ING acquisitions with a combination of cash on hand and borrowings under its secured credit facility. The Company raised $800 million of new bank debt for this purpose in March 2011.
About CB Richard Ellis
CB Richard Ellis 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. CB Richard Ellis 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 at www.cbre.com.
“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 Clarion Real Estate Securities business of ING Group NV 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 Clarion Real Estate Securities with CB Richard Ellis’ existing real estate investment management business, our ability to leverage the integrated platform to capture a larger share of the global real estate securities investment market, the projected performance and potential risks and liabilities and transaction costs relating to ING Clarion Real Estate Securities relative to the price agreed to be paid for the business, as well as other risks and uncertainties discussed in CB Richard Ellis’ 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, CB Richard Ellis 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 CB Richard Ellis 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 CB Richard Ellis’ 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 March 31, 2011. Such filings are available publicly and may be obtained off the Company’s website at www.cbre.com or upon request from the CB Richard Ellis Investor Relations Department at .
Chief Financial Officer