FRANKFURT
DWS Group's RREEF Property Trust will liquidate its seven-property portfolio and dissolve, returning proceeds to stockholders. The decision signals deepening stress in commercial real estate as duration risk and cap rate normalization continue to pressure valuations across the sector.
The nontraded REIT's exit reflects a broader institutional retreat from commercial properties as rising interest rates have compressed valuations. Higher borrowing costs have exposed pricing gaps between seller expectations and buyer capacity, particularly in debt-heavy portfolios assembled during the low-rate cycle.
DWS, the Frankfurt-based asset manager majority-owned by Deutsche Bank, has faced regulatory scrutiny over ESG reporting discrepancies. In 2021, the U.S. Department of Justice and Securities and Exchange Commission opened investigations after an internal report contradicted DWS's public claim that half its assets met ESG criteria. German regulators also examined Deutsche Bank president Karl von Rohr's involvement in the disclosures.
The company replaced CEO Asoka Wöhrmann in 2022 following a police raid at its Frankfurt offices. Stefan Hoops, formerly head of Deutsche Bank's corporate bank, assumed the role.
In January 2026, DWS sought to stabilize its position by injecting capital into a Fosun International-controlled firm in exchange for a minority stake—a move reflecting capital constraints in the asset management space.
