Bloomberg News

Deutsche Bank Towers Get Financing From Allianz Unit for Fund

June 08, 2011

June 8 (Bloomberg) -- Deutsche Bank AG’s two-tower headquarters in Frankfurt received a loan from an Allianz SE unit as the German bank’s DWS division seeks to raise money from retail investors for a fund that manages the landmark building.

Allianz Real Estate provided a loan of 315 million euros ($462 million), its first such commercial real-estate financing in Germany, for the DWS Access Deutsche Bank Tuerme fund, spokesman Roland Deger said today. DWS, the mutual funds unit of Deutsche Bank, started marketing the closed-end fund to investors this week to raise equity of 350.7 million euros, according to DWS spokesman Claus Gruber and the prospectus for the transaction.

Deutsche Bank, Germany’s biggest lender, said in March it agreed to sell and lease back its two towers to a fund run by DWS for about 600 million euros. The German lender spent three years renovating the iconic glass towers, known as “Soll & Haben,” or debit and credit, to reduce energy use and carbon- dioxide emissions, and moved 2,800 people back into them in February.

Banco Santander SA, Spain’s biggest bank, and HSBC Holdings Plc, Europe’s largest bank by market value, have sold their head offices and leased them back in the past three years. Deutsche Bank plans to lease the buildings for 15 years and has an option to extend the tenancy by another five years, according to the prospectus. to extend another five years, according to the prospectus. The German lender’s headquarters have been located in the buildings in central Frankfurt for more than 25 years.

--Editors: Cecile Gutscher, Andrew Blackman

To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net.

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net.


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