New York-based Deutsche Bank has combined the operations of its existing real estate investment management groups to form DB Real Estate Creating, the second largest investment adviser in combined real property and real estate equity securities. The new entity has $21 billion in assets under management.

Deutsche Asset Management in Australia, Deutsche Grundbesitz in Germany, Deutsche Bank Real Estate Private Equity Group in London, Deutsche Property Asset Management Ltd. in London, DB Realty Mezzanine Investment Funds in New York and Deutsche Bank Fondimmobiliari SGR S.p.A in Italy combined to form DB Real Estate.

Richard Gunthel, managing director in the New York offices, will head up the new entity, which employs more than 500 employees in 13 offices around the world. Products offered include core, value-enhanced and high-yield property investments, as well as investments in publicly-traded real estate securities. According to Gunthel, the challenge still ahead is to integrate the global businesses while maintaining a healthy balance of local independence.

"The formation of DB Real Estate is a clear example of the whole being greater than the sum of its parts," says Gunthel. "Our objective in integrating them is to enhance the value inherent in each franchise by generating maximum cross-border access to capital, deal flow and equally important, investment expertise."