CB Richard Ellis Group, Inc. (CBG) recently announced that it has acquired ING Clarion Real Estate Securities (CRES) from Netherlands-based ING Groep NV (ING). The acquisition was funded by a combination of cash and borrowings under its secured credit facility and the company also raised a new debt of approximately $800 million for this purpose in March 2011.
The company further expects to complete the pending acquisition of ING’s Real Estate Investment Management (REIM) operations in Europe and Asia by the end of fiscal 2011. The total purchase price for the ING CRES and REIM businesses is approximately $940 million.
Following the acquisition, the new securities business will be integrated into CB Richard’s Global Investment Management business segment and will operate as CBRE Clarion Securities.
CB Richard possesses a broad range of real estate products and services and an extensive knowledge of domestic and international real estate markets that enables it to operate as a single-source provider of real estate solutions. ING Clarion is presently a part of this company, which offers the best services to its clients.
As a part of this transaction, CB Richard also acquired CRES co-investments for approximately $59 million. As of March 31, ING CRES had approximately $20.5 billion in total assets under management.
CB Richard is the world’s largest commercial real estate services firm, with leading full-service operations in major metropolitan areas throughout the world. The company offers a full range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estate.
CB Richard currently retains a Zacks #3 Rank, which translates into a short-term Strong Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.
CB RICHARD ELLS (CBG): Free Stock Analysis Report
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