RREEF acquires minority stake in RE hedge fund

The alternatives arm of Deutsche Bank, a significant player in infrastructure investment, has followed GIC Real Estate in buying a ‘significant minority’ interest in Rosen Real Estate Securities. The deal is expected to close later this year.

RREEF has bought a minority stake in the real estate hedge fund, Rosen Real Estate Securities, for an undisclosed sum.

The alternatives arm of Deutsche Bank said in a statement it had acquired a “significant minority interest” in the Berkeley, California-based long/short real estate investment advisor. A spokeswoman declined to provide further details.

Charles Leitner, global head of RREEF Alternative Investments, which includes real estate, infrastructure and private equity operations, said in the statement the deal, which was expected to close by the end of the year, would provide another investment option for clients and help RREEF “deploy capital”.

The deal follows in the footsteps of a $300m investment and purchase of an equity stake by GIC Real Estate, the real estate arm of Singapore’s sovereign wealth fund, in January. GIC Real Estate will remain an investor and minority stake holder following the RREEF deal, Deutsche Bank said.

Ken Rosen founded Rosen Real Estate Securities (RRES) in 2004 after selling Lend Lease Rosen Real Estate Securities, a $3 billion REIT in June 2003. 

RREEF said it would help expand RRES’ long/short real estate investment platform and collaborate on product distribution.