Chillin' out till it needs to be funded
The planned sale of DWS Institutional and Insurance fund assets are a sizable enterprise including the $46 bln RREEF real estate holdings.
Its twin towers in Frankfurt are held in another DWS Europe REIT trust, after renovation in 2007.
DWS Institutional Holdings of EUR 162 bln or $218 bln may well fetch a premium price of over 5% of assets but the bank is unlikely to press for too much in remuneration, booking the sale to among others, Blackrock, State Street and BNY Mellon JP Morgan is usually a cautious buyer and not likely to be interested in a premium buy as is required in a compeetitive bid when buyer interest is present.
The funds on sale are mistakenly supposed to be not central to the DWS franchise as DWS has retained the growing business in Asia and the core business in Germany ($205 bln) and Europe to an AUM of EUR 288 bln or $400.8 bln overall. The business being sold has AUM of EUR 394 bln or $537.9 bln including the Retail assets of Scudder investments acquired in 2002 in the US for an AUM of $56.5 bln that will also fetch a nice premium for mainline asset management companies
The bank will be able to apply a capital gain of EUR 3 bln and above after the sale, with the assets of Deutsche Insurance Fund Administration , also likely acquired in the Bankers’ Trust acquisition even if it is sold at a lower premium of 3.x% of AUM