RREEF Property Trust, a U.S. REIT overseen by DWS, plans to dispose of all assets and dissolve the vehicle. The company said the proposal "is subject to the approval of the company's stockholders, and the company plans to convene a special meeting of its stockholders for their consideration." It also intends to return net proceeds from asset sales to stockholders "when appropriate."
Chief Executive Officer Todd Henderson cited "a period of heightened redemption activity" along with "challenges of attracting new capital" as reasons for the move. Fundraising trailed peers even before the 2022 interest rate hikes made U.S. property a tougher sell. The trust's U.S. holdings come against a backdrop where such assets have remained a trouble spot for Deutsche Bank.
RREEF Property Trust was an early entrant in the net‑asset value REIT format, where investors buy and redeem shares based on the portfolio's appraised value. It focused on U.S. apartments, retail properties and warehouses. The NAV REIT model, typically aimed at individual investors, surged in popularity as players like Blackstone Inc. and Starwood Capital Group raised billions for non‑traded REITs.
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Per data from Robert A. Stanger Co., RREEF Property Trust saw outflows in all but one quarter over the past 15. Michael Covello, Stanger's executive managing director, said, "It never got traction." "They're doing the right thing by investors to liquidate and return capital." If the wind‑down proceeds, stockholders would receive net proceeds from the asset sales when the company deems the timing appropriate.
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