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Making good on a promise to boost its asset management business, Deutsche Bank AG on March 7 agreed to pay $490 million for real estate fund manager RREEF.
The deal propels Deutsche Bank to the top spot among the world's real estate fund managers, with more than $36 billion under management.
The Frankfurt-based bank said it bought RoPro U.S. Holding Inc., the holding company that owns RREEF, from four Dutch fund management companies: Haslemere NV, Rodamco Europe NV, Rodamco North America and Robeco Groep NV (see deal memo).
Deutsche Bank is paying $440 million in cash for Chicago-based RREEF's operating business and $50 million for specific investments entered into with other investors.
Outgoing Deutsche Bank chairman Rolf Breuer has said the bank would concentrate more on its private banking and asset management businesses in an attempt to avoid the volatility of investment banking and poor returns on German retail banking.
The RREEF acquisition comes just six months after Deutsche Bank acquired 100% of Zurich Scudder Investments in a $2.5 billion asset swap.
Asset management "seems to...