CBRE in talks to buy ING real estate unit -source

LONDON Jan 14 (Reuters) - U.S. property group CB Richard Ellis (CBG.N) is in talks to buy ING Real Estate Investment Management, a source familiar with the situation said, in a deal worth about 1 billion euros ($1.35 billion).

The Financial Times had earlier said that CBRE was the frontrunner to buy the real estate business of Dutch bank and insurance group ING Groep NV (ING.AS).

Other bidders include Vornado Realty Trust (VNO.N), a U.S. real estate investment trust and Jones Lang LaSalle (JLL.N), a property services group, the FT said.

The deal valued the business at about 1 billion euros ($1.35 billion), the source said.

ING and CBRE declined to comment.

ING said earlier in January it may sell the unit in its entirety or in pieces and a decision was expected in the next few months. [ID:nLDE70307X]

ING has split its bank and insurance operations, and plans to sell some of its real estate business after suffering heavy losses in the credit crisis. It still needs to pay back roughly half of 10 billion in state aid.

($1=.7436 Euro)

(Reporting by Douwe Miedema, Editing by Chris Wickham and Erica Billingham)