US/EUROPE - Deutsche Asset Management (DeAM) has agreed to buy the US-based real estate investment manager RREEF, from its European owners for a total of $490m.
Under the terms of the acquisition, DeAM will pay RREEF's four owners a total of $440m for the property manager's operating business, in addition to an incremental $50m for co-investment assets relating to specific real estate transactions entered into by RREEF with other investors.
RREEF is currently owned by four European institutions: Haslemere, Rodamco Europe, Rodamco North America and Robeco Groep. Haslemere and Rodamco Europe will receive $150m a piece as they both own 36% of the firm, whilst Rodamco NA and Robeco will receive approximately $96m and $10m a piece, equal to their respective shareholdings of 23% and 5%.
The acquisition of RREEF will add another $16.2bn to DeAM's total assets under management. The deal, subject to regulatory approval, is expected to go through in April.
Whilst RREEF will maintain its local franchise and investment focus, it will operate as a business unit within DB Real Estate, DeAM's real estate investment division. The ‘RREEF’ brand name will be preserved, as will its senior management according to DeAM.
By Geoffrey Ho
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