NETHERLANDS - ING has agreed with CB Richard Ellis (CBRE) to sell most of its real estate investment management business (ING REIM) in a €770m deal.

In addition, ING will sell as much as €77m of its equity stake in existing ING REIM funds, it said.

Jan Hommen, chief executive at ING Group, said: "With these transactions, we continue to deliver on our strategic objective of reducing exposure to real estate, simplifying our company and further strengthening our capital base."

The agreement with CBRE Group - a global commercial property services firm - comprises ING REIM Europe, ING REIM Asia and US-based Clarion Real Estate Securities, which have combined assets under management of €44.7bn, according to ING.

In a separate transaction, ING will also sell Clarion Partners - its unlisted property investment manager in the US - to its management in partnership with US private equity firm Lightyear Capital for €77m.

Clarion Partners has €16.5bn of assets under management.

ING said its Australian business (ING REIMA), with €4.8bn of assets under management, is not included in the deal, adding that it would withdraw gradually from its activities in country.

Officials said ING Insurance would continue its asset management mandate with CBRE.

ING's Real Estate Development and Finance business will be unaffected by the announced transactions and continue to be part of ING Bank, the company said.

ING expects to complete both transactions within the last six months of 2011, subject to regulatory approval.

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