Dere, Swiss Hawk launch two RE funds

London-based Deutsche European Real Estate (Dere) and Swiss Hawk, a niche investment banking group, have signed an agreement to cooperate on the establishment of two new real estate investment funds. The Hanseatic & Baltic Fund will invest in commercial and residential real estate in the Hanseatic and Baltic regions, while the Deutsche Residential Fund will invest in residential real estate in selected areas throughout Germany.

Swiss Hawk did not indicate the target size or expected returns for the vehicles but it said it will provide seed finance and arrange for the new funds to be listed on the Frankfurt Market before the end of 2007. The investment bank is already in talks with a number of 'high profile' in Germany, the UK and Switzerland to provide substantial institution and private equity funding for the vehicles.

Dere, a listed real estate advisory company that establishes and fund manages specialised real estate investment vehicles, will have an exclusive fund management agreement with both of the real estate funds.