DeAM likely to hold on to property arm
Deutsche Property Asset Management (DePAM) in the UK is likely to be retained by the parent company if other parts of Deutsche Asset Management (DeAM) are sold, industry insiders claim.
Earlier this month DeAM in the UK confirmed that the investment bank Hawkpoint had been hired to explore its “strategic options”. Earlier stories suggested parent Deutsche Bank wanted to sell the business to raise cash and to improve its overall returns.
DeAM said: “We have retained Hawkpoint to advise Deutsche Bank’s internal team in assessing the strategic options for the UK fund management business. The review of this business is ongoing and all options continue to be explored.”
An announcement regarding the asset manager’s future may come before the review is completed at the end of March.
However, UK real estate industry professionals said DeAM’s real estate business, DB Real Estate, would be keen to retain DePAM as it wishes to have a strong and integrated European real estate business as part of its global platform.
DePAM has also performed strongly, against a background of strong performance from UK real estate. DePAM’s pooled property funds have performed solidly and last month it joined forces with specialist real estate venture capital group Palmer Capital Partners for a £90m(e130m) sale-and-leaseback deal for 140 Texaco petrol forecourt stores owned by UK supermarket group Somerfield.
Analysts in London believe that if all of DeAM is sold, it could fetch up to €1.1bn. However it is thought it may only sell the embattled equity business.
Last December, Deutsche placed DeAM in the UK under review after the asset manager lost tens of billions of euro worth of institutional mandates during the course of 2004.
DePAM was not available for comment.