Deutsche Bank 'to close commercial real estate advisory'

28 July 2010

Deutsche Bank is reportedly set to close a division that gives advice on commercial real estate transactions.

Inside sources told Bloomberg that the bank is seeking to find new positions within its organization for the employees that will be affected by the closure of the New York-based unit, including its managing director Warren Friend.

Sales of commercial mortgage bonds were worth $234 billion to the industry as a whole in 2007, but this fell by 95 per cent to $11.2 billion in 2008.

Only $3.4 billion worth of the securities were arranged by banks last year, with $1.7 billion done so far in 2010.

Despite allegedly planning to close the division, Deutsche Bank is still set to originate commercial markets for sale as attempts are made in the financial sector to get the market back on its feet.

Earlier this week, Deutsche Bank reported net income of €1.2 billion ($1.5 billion) for the second quarter of the year, slightly up on the $1.1 billion figure recorded in the same period in 2009.

By Claire Archer

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