Manager puts Archstone German vehicle into play

A European fund that invests in German multi-family housing could be sold.

Sources say that the general partner and asset manager of the Archstone German Fund in­tends to appoint Morgan Stanley to advise on a potential sale of the assets or a restructuring.

The semi-open ended, geared fund was established in 2007 following the acquisition by US housing firm Archstone of a majority share in DeWag, which placed the German group’s as­sets into the fund. At the time, the fund’s gross asset value was approximately €775m.

Last October, Archstone was sold by Lehman Brothers to US residential REITs, Equity Resi­dential and AvalonBay, which inherited a minority stake in the fund as well as ownership of the fund’s manager. It is thought they do not consider the Ger­man business to be core.

A further destabilising factor is that the fund’s cornerstone investor, APG, wishes to redeem its units, though some of the other investors wished to con­tinue the fund.