Rreef Alternative Investments, Deutsche Bank’s global alternative asset management business, has agreed to acquire a significant minority interest in Rosen Real Estate Securities, a Berkel
Rreef Alternative Investments, Deutsche Bank’s global alternative asset management business, has agreed to acquire a significant minority interest in Rosen Real Estate Securities, a Berkeley, California-based long/short real estate investment advisor, and eventually to acquire the entire firm.
The firms will expand Rosen’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 the Berkeley firm’s strategies, including its longstanding Rosen Real Estate Securities Value Fund I. Existing Rosen teams will remain responsible for portfolio management.
‘Rosen’s product line, track record and credibility are highly complementary to Rreef’s model,’ says Charles B. Leitner, global head of Rreef Alternative Investments. ‘This agreement will allow our organisations to join forces on investment expertise and deploying capital, and give Rreef clients access to a top-performing real estate investment manager.’
Kenneth Rosen (photo), chairman of Rosen Real Estate Securities, says: ‘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. 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, and was the founder, chairman and portfolio manager of Lend Lease Rosen Real Estate Securities, a USD3bn real estate investment trust manager that was sold in June 2003.
Last January GIC Real Estate, the real estate arm of the Government of Singapore Investment Corporation, committed USD300m to Rosen funds and acquired a minority stake in Rosen Real Estate Securities. GIC Real Estate will remain a Rosen shareholder following Rreef’s acquisition of a minority stake.
‘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,’ says Kevin Parker, global head of Deutsche Asset Management and a member of the Deutsche Bank group executive committee.
The transaction, whose terms have not been disclosed, is expected to be completed in the fourth quarter. Subject to certain conditions, Rreef has agreed to acquire the remaining ownership stakes in Rosen Real Estate Securities in one or more subsequent transactions.
Rreef Alternative Investments, the alternative investment arm of Deutsche Bank’s asset management division, consists of real estate, infrastructure and private equity businesses. Headquartered in New York, Rreef more than 1,400 investment professionals in 18 cities around the world and had EUR55.2bn in assets under management at the end of June. Deutsche’s asset management business managed a total of USD811.7bn as of mid-2008.
