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.