BlackRock Inc. (BLK:US), the world’s largest money manager, agreed to buy U.K. property funds run by Deutsche Bank AG (DBK)’s RREEF real estate affiliate.
BlackRock’s U.K. Property Fund (MRCPTYI) will add 27 real estate investments valued at more than 335 million pounds ($543 million) in the deal, bringing assets under management to more than 2.4 billion pounds, the New York-based firm said in a statement today. RREEF’s U.K. retail, office and industrial property funds are included in the acquisition. The transaction’s terms weren’t disclosed.
The deal “increases and further diversifies the fund’s client base by an additional 64 investors, giving them access to a longstanding U.K. real estate platform,” BlackRock said in the statement.
BlackRock can improve the value of some of the assets formerly managed by RREEF and this will be “accretive to the future performance” of the fund, the firm said. BlackRock’s U.K. fund has returned 8.8 percent a year for the last 20 years and its investments include doctors’ offices, marinas and warehouses.
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