pbb buys Deutsche Investment Group to fuel growth

European commercial real estate lender Deutsche Pfandbriefbank AG (pbb) is advancing its strategic transformation by acquiring a majority stake in Deutsche Investment Group.

Deutsche Investment Group

This acquisition fulfills a key objective of pbb's Strategy 2027: to expand its investment management business. pbb aims to grow its assets under management by €4-6 bn by 2027, and this transaction will add approximately €3 bn to that goal. The resulting commission income is expected to significantly contribute to pbb's target of generating 10% of its earnings from investment management by 2027.
Deutsche Investment Group is an asset and investment solutions provider focused on German residential and commercial real estate for institutional investors with a sustainably profitable business.
pbb will acquire 89.9% of the regulated asset management company (AIFM) and other companies and majority interests within the group. The purchase price, including variable components, is in the mid-double-digit million euro range. 
Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in the first quarter of 2026 and is anticipated to positively impact pbb's consolidated net income as early as 2026.
Kay Wolf, CEO of pbb, commented: "We are making very good progress with the Bank's transformation. Deutsche Investment Group is an established investment manager with a strong range of services, especially in the residential sector. With this acquisition, we are laying a strong foundation for the further expansion of our investment management, which will complement our core business of commercial real estate financing in Europe in the future. The withdrawal from the US markets will have a considerable negative impact on our result this year. However, our continued strong capital ratio shows that we can shoulder this strategic decision well. We expect to significantly reduce our risk positions in the coming months. This will free up capital that we intend to utilise in line with our Strategy 2027."
The bank's commercial real estate financing business in Europe experienced significant growth in the first half of the year, with new business increasing by 52% to €2.5 bn (compared to €1.6 bn in H1 2024, including prolongations exceeding one year). The second quarter accounted for €1.5 bn of this total. 
Strategic property types, including hotels, senior and student housing, and data centres, now comprise 21% of the new business pipeline.