German commercial real estate financing back Deutsche Pfandbriefbank (pbb) has acquired a majority stake in local real estate investment manager Deutsche Investment.
Pbb said it is acquiring a 89.9% stake in the asset management company of Deutsche Investment, as well as other companies and majority stakes of the group for a mid-double-digit million price.
Deutsche Investment brings €3.2bn in managed assets, and investment know-how in the residential and commercial real estate sector in Germany.
Kay Wolf, Pbb’s CEO, said: “With this acquisition, we are laying a strong foundation for the further expansion of our investment management, which will complement our core business of commercial real estate financing in Europe in the future.”
According to Pbb’s first half financial statement, the firm has withdrawn from the US, which resulted in a one-off negative impact on operating profit. In Europe, however, the bank’s commercial real estate financing business grew by 52% year-on-year during the period to €2.5bn.
Pbb considers hotels, senior and student housing and data centres to be strategic growth areas, accounting for 21% of its new business pipeline.
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