Deutsche Bank's Alternative Investment Management Business, RREEF, acquires minority interest in Rosen Real Estate Securities
Purchases stake in fund manager owned by Kenneth Rosen and GIC Real Estate
RREEF Alternative Investments, the global alternatives asset management business of Deutsche Bank’s (XETRA:DBKGn.DE / NYSE:DB) 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’s product line, track record and credibility are highly complementary to RREEF’s model,” said Charles B. Leitner, Global Head of RREEF Alternative Investments. “This agreement will allow our organizations to join forces on investment expertise and deploying capital, and will give RREEF clients access to a top-performing real estate investment manager.”
“We’re excited to have RREEF as a strategic partner which will enhance our product distribution and visibility in investing in publicly traded real estate securities,” said Kenneth Rosen, Chairman, Rosen Real Estate Securities. “RREEF provides us with the ideal combination of distribution capabilities, expanding global reach and a connection to a leading global investment bank with long-standing relationships.”
Ken Rosen has more than 35 years of real estate research experience, with a focus on quantitative macro and regional economic, and property market forecasts. He is a well-known participant in the real estate investment industry and was the founder, chairman and portfolio manager of Lend Lease Rosen Real Estate Securities, a $3 billion REIT investment management firm which was sold in June 2003. Rosen is Professor Emeritus of the Haas School of Business and Chairman of the Fisher Center for Real Estate and Urban Economics at the University of California at Berkeley.
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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RREEF Alternative Investments
RREEF Alternative Investments is the global alternative investment management business of Deutsche Bank’s Asset Management division. RREEF Alternative Investments consists of three businesses: Real Estate, Infrastructure and Private Equity. Headquartered in New York, RREEF Alternative Investments employs more than 1,400 investment professionals in 18 cities around the world to help investors meet a wide range of objectives – from diversification, to preservation of capital, to long-term performance. Named one of the world’s largest alternative investments managers in Global Investor/Watson Wyatt’s Alternative Survey, June 2008, RREEF has €55.2/$87.0 billion in assets under management worldwide as of 30 June 2008.
About Deutsche Asset Management
With approximately $811.7 billion in assets under management globally (as of 30 June 2008), Deutsche Bank’s Asset Management division is one of the world's leading investment management organizations, not just in size, but in quality and breadth of investment products, performance and client service. The Asset Management division provides a broad range of investment management products across the risk/return spectrum.
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 80,253 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.