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The newly acquired ING REIM operations in Asia are being merged with CBRE’s existing real estate investment management operations in the region.
Richard Price, who served as ING REIM’s Asia leader, will now serve as CEO of the combined company’s Asia Pacific investment management platform, overseeing operations in Hong Kong, Shanghai, Seoul, Singapore, Taipei and Tokyo. CBRE’s global investment management business is led by Matt Khourie, Global president.
“This acquisition is a milestone that significantly enhances our talent, resources and market insight in Asia,” said Khourie. “We now have the ability to offer investors an expanded array of investment programs across the risk-return spectrum in the dynamic markets throughout the region,” added Khourie.
Price said “We are pleased to be an integral part of the world’s leading commercial real estate organisation. Our ability to originate sound, market-based ideas is now greatly enhanced, and this will be critical to our mission of achieving the best possible performance for our clients through market cycles.”
With the completion of the acquisitions of ING REIM Asia and ING Clarion Real Estate Securities (CRES), which closed on July 1, 2011, CBRE Investors’ assets under management totals $63.6 billion on a combined pro forma basis, as of June 30, 2011.
CBRE’s acquisition of ING REIM’s operations in Europe remains on schedule to close this quarter. The total purchase price for the three ING businesses CBRE is acquiring- ING REIM Asia, ING REIM Europe and ING CRES - is approximately $940 million.
As part of the transaction that closed today, CBRE has also acquired approximately $17.2 million of real estate co-investments managed by ING REIM in Asia. 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.