RREEF For Sale? Deutsche Bank Signals REIM Business May Be on the Block
Management of $59.4 Billion CRE Portfolio Could Be Up for Grabs as Part of Larger Strategic Review
By Mark Heschmeyer
Deutsche Bank is conducting a strategic review of its global asset management division, which includes its RREEF real estate investment management business.
RREEF with more than 600 employees manages $59.4 billion in real estate globally for more than 800 institutional clients.
Deutsche Bank has reported that its asset management business has been hurt by the intensifying European sovereign debt crisis, which has led to ongoing uncertainty, volatility and an unabated slowdown in client investment volumes. And if the situation doesn’t change, it would put further pressure on short-term results. However, it also said that signs of a broad-based recovery in the real estate market, if continued, would improve prospects in alternative investments.
The strategic review of the bank’s asset management division is focusing in particular on how recent regulatory changes and their associated costs, along with changes in the competitive landscape, are impacting the business and its growth prospects.
All strategic options are being considered, the bank said. The review covers all of the asset management division globally, except for its DWS franchise in Germany, Europe and Asia, which Deutsche Bank has already determined is a core part of its retail offering in those markets.