RREEF Property Trust, Inc., a publicly registered, non-listed real estate investment trust advised by an affiliate of DWS, announced on September 18, 2026, a plan for complete liquidation and dissolution. This plan, subject to stockholder approval, involves the voluntary sale of all the company's assets and subsequent dissolution. The decision was driven by persistent heightened redemption activity within the company and the broader industry, coupled with difficulties in attracting new capital, leading the board to conclude that an orderly liquidation is the most effective way to maximize stockholder value.
The company's Chairman, President, and CEO, Todd Henderson, highlighted the fund's "since-inception annualized total returns as of August 31, 2026, of 6.35% for Class I shares." Despite this performance, RREEF Property Trust has faced challenges in meeting redemption requests, fulfilling only 67.6% of requests in June due to quarterly redemption limits of 5% of net asset value. Monthly redemption caps of 2% of NAV also led to shortfalls in April and May, with 95.6% and 97.5% of requests met, respectively. The fund, which raised approximately $498 million from investors since its 2013 inception, held $337 million in assets as of March and owned eight properties then.
As part of the liquidation plan, RREEF Property Trust has immediately suspended the sale of its common stock, its share redemption plan, and its distribution reinvestment plan. The company intends to continue paying monthly distributions to stockholders while awaiting approval for the liquidation. The current portfolio consists of seven real estate investments across five states, encompassing industrial, retail, residential, and office sectors. The company aims to complete the sale of its assets within 24 months after stockholder approval. Proceeds from these sales will be returned to stockholders, after accounting for liabilities, obligations, and expenses.
This move by DWS comes amidst a broader trend of German real estate funds facing increased redemption pressure. Deutsche Bank's DWS has also indicated it will sell more properties from three open-ended real estate funds (Grundbesitz Europa, Grundbesitz Global, and Grundbesitz Fokus Deutschland) to meet investor redemption requests. The combined assets of these funds are approximately $10 billion, with net fund assets of $8.2 billion. Since the end of the low-interest-rate period four years ago, these three funds have reportedly sold around $4.5 billion worth of properties. The current market, characterized by rising interest rates, is making property sales more challenging, potentially forcing some assets to be sold at lower prices.
In the wider European market, trading volumes for traditional investment funds, particularly open-end real estate funds, have significantly decreased, with selling pressure continuing to mount. Open-end real estate funds experienced a nearly 50% year-over-year decline in turnover to approximately $6.9 million in August. By the end of July, net outflows from these funds had totaled $3.7 billion, with fund assets falling to around $105 billion. At least four open-ended real estate funds have suspended redemptions in 2026, indicating a widespread issue within the sector.
