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The property investment industry is heading for further consolidation following CBRE’s “special” deal with ING, a Movers & Shakers audience has been told.
Speaking at The Dorchester in London yesterday, CBRE Investors UK head Giles King said the underbidders on the ING deal would be driving more activity in the sector.
“In this world you’ve either got to be the biggest, hopefully the best as well, or you’re a niche player and there’s not a lot in between. I think that [consolidation] trend will continue.”
CBRE has agreed to buy the property investment management business of Dutch financial group ING for $940m (£580m), creating the world’s largest property fund management group with almost $100bn under management in 102 funds.
“The one staggering fact about that deal is that ING had 400 clients, CBRE Investors had 200 clients globally and there is only a 4% overlap,” said King.
“That to me is why that deal is so special.”
Toby Courtauld of Great Portland Estates and Max Sinclair of Eurohypo UK also took part in yesterday’s discussion, “What’s Going to Happen to UK Real Estate in 2011/12?”, chaired by Estates Gazette editor Damian Wild.
