Italy's property fund management industry has embarked on a fresh wave of consolidation as it struggles to survive amid reduced investment and fund-raising activity.
Italy's property fund management industry has embarked on a fresh wave of consolidation as it struggles to survive amid reduced investment and fund-raising activity.
In late April, Italian investment and fund manager Castello acquired RREEF's Italian property fund business, RREEF Fondimmobiliari, adding nearly EUR 500 mln to its assets under management. The takeover was an opportunistic move at a time when Deutsche Bank is seeking a sale of its entire asset management arm, RREEF.
‘We wanted to consolidate our position in the real estate fund sector because we believe it is necessary to grow assets under management and to create economies of scale in this difficult market,’ Giampiero Schiavo, CEO of Castello, told PropertyEU.
In exchange for the funds, Deutsche Bank's RREEF Real Estate has gained a 10% stake in Castello as well as a mandate for the asset management of the vehicles through its RREEF Opportunities Management Srl unit.
The tie-up is the first of a string of alliances currently being negotiated between Italian fund managers. Henderson Global Investors is joining forces with Investire Immobiliare to develop and distribute property funds in Italy.
Find out more about the Italian market at PropertyEU's Investment Briefing in London on 20 June Clink on the link below for more information