Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-DekaBank saw investors withdraw 102 million euro ($129.7 million) from its open-ended fund last month. That means the total drain from its real estate funds since the start of the year totals euro 841 million ($1.01 billion), according to new figures published by the German investment and asset management association BVI.

The report says that DekaBank, which is owned by savings banks and regional state banks and is Germany’s second largest fund manager, saw the withdrawal of euro 2.7 billion ($3.41 billion) from the real estate funds in 2004. The withdrawals, prompted it to pump in euro 1.7 billion ($2.14 billion) of its own money to offset the losses as its net profit fell by 35%.

DekaBank acting chief executive Fritz Oelrich, who took over after Axel Weber’s surprise exit in March, has pledged unlimited support for its property funds. In a statement issued yesterday, bank officials said Holger Sepp, deputy chief of fund-management arm Deka Investment, had resigned “as part of the changed management line-up”

The German real estate fund sector as a whole has suffered from a depressed domestic property market, a corruption scandal and a drop in investor confidence. Frankfurt state prosecutors are investigating about 80 people amid allegations of large-scale bribery in local property and building industries, including a number of former DekaBank employees.

The investigation has hit public confidence in open-ended funds in general and investors are voting with their purses. BVI numbers show that money was drained from DekaBank’s rivals in April. For instance, DIFA saw withdrawals of euro 110 million ($139 million) and DB Real Estate Investment euro 98 million ($123.8 million).

The new outflow, though, from the German open-ended fund sector has slowed from euro 769 million ($972 million) in March, when Deka’s domestically focused open fund lost euro 482 million ($609 million) and its international property fund euro 103 million ($130 million).

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.