Bank follows big names into real estate - banking jobs

People in banking jobs are discovering that European firm Commerzbank is to merge its real estate funds as it looks to expand worldwide growth.

It is the latest in a string of big name investment management operations to make a concerted move into large scale real estate after Morgan Stanley and Invesco altered their structures.

As a result of the Commerz Real's two open-ended real estate fund merging, it has created Europe's largest fund at €12.5 billion (£11.3 billion).

Erich Seeger, a member of the board of Commerz Real and head of fund sales, suggested that the larger fund, with its wider diversification, could the lower the "ramifications of temporary market events" for investors and give them the "best of two worlds".

He said: "We will combine the stability of a comprehensively diversified real estate portfolio marked by a European focus with an expanded opportunity potential that arises from the addition of a global component."

Commerzbank, which built a strong reputation in Germany as a private and corporate bank, also has operations in the City of London.

Updated: 25 March 2010.
Categories: banking-and-financial-services, market-and-industry-news.