Purchases stake in fund manager owned by Kenneth Rosen and GIC Real Estate
Deutsche Bank (XETRA:DBKGn.DE / NYSE:DB) on behalf of RREEF Alternative Investments, the global alternatives asset management business of Deutsche Bank’s Asset Management business (DeAM), today announced that it has signed an agreement to acquire a significant minority interest in Rosen Real Estate Securities LLC (RRES). RRES is a Berkeley, CA-based, long/short real estate investment advisor.
The firms will expand RRES’s long/short real estate investment platform and collaborate on product distribution, which will provide Deutsche Bank’s institutional and high net worth investors with access to RRES’s strategies. RRES currently manages long/short real estate strategies, including its long-standing Rosen Real Estate Securities Value Fund I, L.P. Existing RRES teams will continue to be responsible for portfolio management.
Rosen announced in January 2008 that GIC Real Estate (GIC RE), the real estate arm of the Government of Singapore Investment Corporation, had committed US$300 million of funds and simultaneously acquired a minority stake in Rosen Real Estate Securities. GIC RE will remain an investor and owner following RREEF’s acquisition of a minority stake in RRES.
“Expanding our alternative investments platform is a key initiative for Deutsche Asset Management’s global growth strategy and we will continue to invest as opportunities arise in areas that add the most value for our clients,” said Kevin Parker, Global Head of Deutsche Asset Management and Member of the Deutsche Bank Group Executive Committee.
Closing of the transaction is subject to customary conditions and is expected to be completed in the fourth quarter of 2008. Subject to certain conditions, RREEF has agreed to acquire the remaining interest in RRES in one or more subsequent transactions, with Rosen and RRES teams responsible for fund management. Financial terms were not disclosed.
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