US/GERMANY – Deutsche Bank (DB) is to acquire US real estate investment management company, RREEF, for $440m (€500m),. According to DB, the deal means the group will become the world’s largest investment adviser of combined real property and real estate equity securities, with $36bn in global real estate assets under management. The deal is expected to close in the first half of this year.
RREEF, which has corporate offices in New York, Chicago and San Francisco, has some $16.2bn in assets under management and invests in the full spectrum of property portfolios in the 50 largest US cities.
The deal also includes an incremental $50m for co-investment assets that relate to deals RREEF has with co-investors.
DB says there are no plans to change RREEF’s current investment focus and local franchise structure. Thus, it will continue to operate under its current brand name and senior management, but will be integrated as a separate business unit within DB Real Estate, the newly-formed property management group of Deutsche Asset Management.
Says Richard Gunthel, managing director and global head of DB Real Estate: “The acquisition of RREEF will complete our US real estate investment management product offering and strengthen our position as a global asset manager.”