CB Richard Ellis Group announced on Tuesday that it has raised $800 mln (EUR 574 mln) of new-term loans under its credit agreement to finance the acquisition of the real estate investment management businesses of Netherlands-based ING Group.

CBRE has received commitments from a financing consortium led by Credit Suisse and Merrill Lynch, Pierce, Fenner & Smith to fund $400 mln of seven-year senior secured term loans under a new Tranche C Facility and $400 mln of eight and one-half year senior secured term loans under a new Tranche D Facility. The interest rate for the Tranche C loan is 325 basis points over Libor or approximately 3.5% while the interest rate for the Tranche D loan is 350 basis points over Libor or approximately 3.75% currently.

CBRE announced in February that it was acquiring the bulk of ING REIM's operations in Europe and Asia, as well as Clarion Real Estate Securities (CRES), its US-based global real estate listed securities business, for $940 mln in cash as well as co-investment interests in certain funds managed by ING REIM. Through the deal, CBRE is taking over assets under management totaling $60 bn, adding significantly to its CBRE Investors' business which manages some $38 bn in assets.

CBRE and its lenders also agreed to amendments to its credit agreement that provide the company with additional flexibility including permitting additional wholly-owned subsidiaries to be borrowers of the new term loans. CBRE plans to use cash on hand and these new borrowings to finance the acquisitions.

'We are very pleased that our financing for the ING REIM acquisition is now in place and that we continue to have substantial flexibility and capacity to take advantage of other opportunities in a recovering commercial real estate market,' said Chief Executive Brett White. Credit Suisse acted as Administrative Agent and Collateral Agent. The Royal Bank of Scotland and HSBC Bank acted as syndication agents. Wells Fargo Bank and Barclays Bank acted as documentation agents.