Deutsche Bank AG (Xetra: DBKG.n.DE / NYSE: DB) today announced that it has agreed to purchase RoPro U.S. Holding, Inc., a holding company for the real estate investment manager RREEF, from Haslemere NV, Rodamco Europe NV, Rodamco North America and Robeco Groep NV. Deutsche Bank will pay approx. US$440 million for RREEF's operating business and an incremental US$50 million for co-investment assets relating to specific real estate transactions entered into by RREEF with select co-investors. The transaction is expected to close in 2Q2002.
RREEF is a leading US-based real estate investment manager with US$16.2 billion in assets under management as of 31 December 2001. RREEF's investment focus is on industrial properties, office buildings, residential apartments, and shopping centers in the 50 largest metropolitan areas across the US. RREEF's clients primarily consist of US corporate and public pension funds, including many of the nation's largest plan sponsors such as the California Public Employees' Retirement System, Los Angeles County Employees' Retirement Association and Citigroup. The RREEF organization employs approximately 1,000 people and operates out of three corporate offices located in Chicago, San Francisco and New York.
While RREEF will maintain its local franchise and investment focus, it will operate as a business unit within DB Real Estate, the real estate investment management group of Deutsche Asset Management. The "RREEF" brand name will be preserved and the senior management team will remain in place. Currently, DB Real Estate manages more than US$21 billion and is the second largest manager of real estate equity globally, according to the Pensions & Investments survey in the October 15, 2001 issue.
"With the acquisition of RREEF, Deutsche Bank's Private Client and Asset Management (PCAM) division expands considerably its offering of global alternative asset investment products. It enhances our ability to offer our clients first-class US real estate investment products," said Michael Philipp, member of the Deutsche Bank Group Executive Committee with responsibility for Asset Management and Wealth Management Services. "The acquisition of RREEF fits with PCAM's strategy to improve our position as manager of third-party capital for our clients and is entirely consistent with other acquisitions we have made recently."
The acquisition of RREEF is a strong complement to PCAM's existing global real estate product offering and constitutes another important step by PCAM towards its strategic goal of becoming the leading provider of investment products worldwide. RREEF provides yet another opportunity to leverage PCAM's existing global distribution channels, including the recently announced Scudder acquisition.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our trading revenues; potential defaults of borrowers or trading counterparties; the implementation of our restructuring including the envisaged reduction in headcount; the reliability of our risk manage-ment policies, procedures and methods; and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of September 20, 2001 on pages 9 through 13 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir.
SEC Form 20F - PDF / 2.7 MB