Deutsche Bank enters the real estate market

Deutsche Bank will form a joint venture with Israeli developer Globe Trade Center (GTC) through its investment fund management company RREEF Opportunity Funds, to build two residential complexes in Bucharest. The German company’s will hold a minority stake of 49.9% or 29.9% – depending on the agreement of the two parties, in a GTC owned company, formed in order to develop the two residential complexes in Bucharest. The investment fund will also become a shareholder of a GTC-owned company in Hungary, through which it will develop a housing project in Budapest. The total investment made by the new entity in Romania and Hungary will amount to 270 million euros. “The partnership between the GTC and one of the biggest banks in the world will build a strong brand on the residential markets in Bucharest and Budapest,” Hagai Harel, one of the members of the managing team of the GTC group told Polish agency Interfax News Agency. Contacted by ZF, Shimon Galon, country manager of GTC, did not wish to comment. The projects in Bucharest will consist of blocks of luxury flats, with the first stage of the development scheduled for completion in 2008.