Deutsche Bank will buy U.S. real estate manager RREEF for $490 million in a deal designed to boost the German groups product offering in the United States, said Armin Nedermeier, Deutsche Bank spokesman. The deal follows the banks acquisition last year of Zurich Scudders mutual funds operations and is Deutsches first acquisition of a U.S.-based real estate manager. RREEF will retain its brand name but operate as a business unit with Deutsche Asset Managements real estate investment management business, DB Real Estate.
The transaction will be completed in the next three months and will boost the groups real estate assets under management to $36 billion.