German giant Deutsche Bank’s asset manager, DWS Group, is looking to sell properties to generate liquidity for investors in its €4.3B Grundbesitz Europa real estate fund after restricting redemptions.
The German fund manager said it would initially pay just 10% of redemption requests falling due, under a restriction taking effect from 27 October and intended to give DWS more time to raise cash through orderly property sales.
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The fund had €342.8M in liquid assets at the end of September, against a net asset value of €4.3B and a property portfolio valued at €6.3B, according to its most recent fact sheet.
Its holdings span 63 properties across Europe, including offices, residential buildings and retail assets, with some held directly and others through property companies.
The portfolio includes several substantial UK assets, alongside residential property in Ireland and offices in Amsterdam. Their presence on the fund's balance sheet does not mean they are being marketed for sale, and DWS has not disclosed which buildings it may seek to dispose of, but they are all options for the fund.
DWS said in a statement that the redemption restriction would allow the fund to “generate liquidity through orderly sales processes and potentially achieve appropriate returns again in the future.”
The cap is permitted for up to 12 months but can be reviewed and adjusted or lifted early.
It follows a prolonged period of withdrawals from German open-ended property funds as higher interest rates and pressure on property values have challenged a model that allows investors to quickly redeem holdings while the underlying assets can take months or years to sell.
According to DWS’ reported values and floor areas, its holdings across three key European markets include 21.2% in the UK, 3.6% in the Netherlands and 2.9% in Ireland.
The UK
S5 International Quarter, Stratford
Directly held
Value: €348.6M
Size: 511,100 SF
The Stratford office tower is one of the fund's largest UK holdings. Completed in 2018 in the Queen Elizabeth Olympic Park business district, the 20-storey building is let long-term to the UK's Financial Conduct Authority.
The Northcliffe, Tudor Street
Directly held
Value: €214.5M
Size: 187,600 SF
The former Daily Mail headquarters and printing works is a Grade II-listed office building renamed The Northcliffe. DWS said more than 80% of its space is let, with some leases running to 2038, and it reports rental levels above its business-plan assumptions. The building has undergone energy-efficiency improvements and holds a BREEAM Outstanding rating.
Peckham Place, south London
Held 100% through a company
Value: €55.6M
Size: 90,500 SF
The residential building on Queen's Road, Peckham, is held through Peckham Place, which the DWS fund wholly owns.
2 St Peter's Square, Manchester
Directly held
Value: €95.4M
Size: 165K SF
The Manchester city centre office building was developed by Mosley Street Ventures, a business owned by Betfred founders the Done family. The freehold of 2 St Peter’s Square was sold to a fund controlled by DWS early in construction for £100M in 2015.
Palace Exchange and Palace Gardens, Enfield
Directly held
Value: €69M combined
Size: 424K SF
DWS owns two shopping centres in Enfield, north London: Palace Exchange, valued at €39.8M, and Palace Gardens, valued at €29.3M.
Circle Square, Manchester
Held 63.7% through a company
Value: €129.9M
Size: 198K SF
These purpose-built student accommodation blocks were acquired as part of a portfolio of Vita Student assets for around £600M in August 2019 on behalf of its real estate funds.
Ireland
6 Upper Glenageary Road, Dún Laoghaire
Held 100% through a company
Value: €186.5M
Size: 344K SF
The residential development on Upper Glenageary Road is held through Grundbesitz Europa ICAV, a company the fund wholly owns. The 214 rental units were acquired for €108M in 2019, several months before scheme completion.
The Netherlands
Rivierstaete, Amsterdam
Directly held
Value: €177.3M
Size: 313K SF
Rivierstaete is a mixed-use office and residential complex on the Amstel, comprising the RiverSide and CitySide office sections alongside a residential block. DWS says it underwent a comprehensive modernisation completed in 2018 and is let on a long-term basis to a major international communications and marketing services business.
Huys Azië, Amsterdam
Directly held
Value: €47.8M
Size: 92K SF
The eight-storey office building at Jollemanhof overlooks the IJ waterfront and includes 120 underground parking spaces. DWS says a Dutch legal advisory firm signed a new lease in 2025 with a term of around six years.
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