Deutsche Bank's (DB) asset manager DWS is considering emergency measures, including redemption limits or penalty fees, at three German property funds as persistent investor withdrawals pressure liquidity, the Financial Times reported Tuesday.

DWS's three Grundbesitz funds have paid out 6 billion euros ($6.87 billion) since 2022, representing roughly half of their assets while selling about 4.5 billion euros of property and approaching statutory borrowing limits, according to fund disclosures cited by the FT.

German open-ended property funds saw 17.3 billion euros of net outflows since early 2024, cutting industry assets to 107 billion euros by end-July, Bundesbank data showed, the report said.

Higher rates and weak commercial property markets, especially offices, are pressuring the funds, and DWS is winding down its $203 million RREEF Property Trust in the US amid persistent redemptions, the report added.

Deutsche Bank and DWS did not immediately respond to MT Newswires' request for comment.

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