Deutsche Bank’s DWS to Exit London Headquarters By End of Year

(Bloomberg) -- DWS Group GmbH & Co. plans to relocate to new offices in London by the end of the year, as it builds up an identity distinct from majority owner Deutsche Bank AG.

The asset manager will leave the Zig Zag building near Westminster Cathedral and relocate to the Willis building in the capital’s financial district, according to an internal DWS memo seen by Bloomberg.

A DWS spokesman confirmed the contents of the memo and declined to comment further.

Deutsche Bank spun off DWS last year, though it still owns nearly 80% of the asset manager’s shares. Moving to the Willis Building at 30 Fenchurch Avenue, where DWS will occupy two and a half floors, will “help us strengthen our standalone status,” according to the memo.

DWS has been the subject of repeated speculation about a possible merger with firms including the asset management unit of UBS Group AG. While Deutsche Bank sees “some form of consolidation” as necessary to develop DWS into a top 10 global asset manager, it has no plans to give up its majority stake, Chief Financial Officer James von Moltke has said.

DWS has already moved out of Deutsche Bank’s offices in Chicago, according to a person with knowledge of the matter. About 400 employees will make the switch in London, the person said.

These office moves are part of cost-cutting initiatives undertaken by DWS Chief Executive Officer Asoka Woehrmann since he took over last year, as he seeks to offset unsteady flows and industry-wide pressure on fees.

Deutsche Bank is considering subletting the Zig Zag building offices, so DWS’s exit could help to facilitate such a deal. The bank signed a 15-year lease for the property with Land Securities Group Plc and started moving employees in two and a half years ago.

Deutsche Bank has separately signed an agreement with LandSec to move its U.K. headquarters to a building being constructed at 21 Moorfields in the City of London on a 25-year lease.

To contact the reporter on this story: Suzy Waite in London at swaite8@bloomberg.net

To contact the editors responsible for this story: Shelley Robinson at ssmith118@bloomberg.net, Patrick Henry, Lucca de Paoli

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