Deutsche Bank AG’s real estate arm DB Real Estate is set to writedown £200 to £600 million, according to the newspaper reports.
Boersen-Zeitung said DB Real Estate is currently coping with it a liquidity flow of £1.5 billion, by divesting its assets.
Last week, Forbes and the Financial Times Deutschland reported that DB Real Estate is facing a least £100 million writedown.
Yesterday, Boersen-Zeitung quoted analysts who said DB Real Estate’s £6.1 billion liquidity is not at risk and that the fund’s parent company Deutsche Bank AG would intervene if the fund’s liquity flow exceeded £2 billion.
According to FT Deustchland and Forbes, the real estate fund is reviewing its real estate assets after investors withdrew £915 million worth of shares this year, after taking out £1.5 billion a year earlier.
Recently, DB Real Estate Investment GmbH sold three office properties to Rubicon America Trust for €344 million, which was used to establish a platform for the Rubicon Europe Trust Group.
The purchase in November represented a 2.9% discount to current market valuation of €354 million for the portfolio.
DB Real Estate Investment GmbH has retained a 5% interest in the portfolio.
The acquisition is scheduled to settle on December 14, 2005.
The newspapers said a spokesman for Deutsche Bank declined to comment on the matter.
By Nelson Yap
