BNY Mellon selected by Deka Immobilien for fund administration services

August 11, 2020.

 said on Tuesday that DekaBank’s real estate investment-focused subsidiary has selected it to provide fund administration services for the special purpose vehicles through which the German company invests its EUR 40 billion ($46.9 billion) in real estate assets. 

Deka Immobilien will work with New York-based BNY Mellon, which will provide global fund administration services for the special purpose vehicles.

The world's largest custodian bank said it will coordinate and review accounting data from the special purpose vehicles in which Deka funds invest and translate the data to match the required accounting standards. 

The data will be collected through BNY Mellon’s property management interface, which is a web-based application that allows local accountants to provide data in an automated, standardized format.

BNY Mellon will then give the data to Deka Immobilien for its net asset value calculations. This task was previously done in-house by Deka Immobilien, BNY Mellon said.

“We were immensely impressed by the commitment and knowledge of the BNY Mellon team as well as with their technology, which significantly automates the data-gathering process and enhances the oversight of our real estate investment,” Burkhard Dallosch, chief operating officer of Deka Immobilien Investment, said on why the company selected BNY Mellon. 

“This cooperation further contributes to the standardization and comparability of data in the real estate industry as other organizations are also using the expertise of BNY Mellon,” Dallosch said. 

Alan Flanagan, global head of alternatives at BNY Mellon Asset Servicing said, “It is a significant appointment for our Alternative Investment Services team and a testament to the quality of our technology, our global reach and the expertise of the team in Germany.”  

BNY Mellon said it has been doing business in Germany since 1972, and that Germany represents a “core growth market” with around 300 staff in Frankfurt. The bank has around $2 trillion in assets under management in the U.S. as of June 2020. 

DekaBank is the securities house of German savings banks and with its subsidiaries, it forms the Deka Group, which had total customer assets of around EUR 313 billion ($367.3 billion) as of December 2019.