NEW YORK CITY-Now that Deutsche Bank AG and locally-based Guggenheim Partners have ended exclusive negotiations over the sale of RREEF after both parties “were unable to agree on terms for the sale of the business,” commercial real estate sources tell GlobeSt.com that several factors could have contributed to the fizzle-out, including pricing discrepancies and euro zone concerns.

“Quite simply, they could not agree on terms,” Arthur M. Milston, managing director at Savills LLC, tells GlobeSt.com following the announcement, which came on the heels of the Frankfurt-based bank’s mutual agreement with Guggenheim to pull the plug on exclusive negotiations with three other entities just one month ago: DWS Americas, the bank’s mutual fund business in the Americas; DB Advisors, its global institutional asset management business; and Deutsche Insurance Asset Management, the global insurance asset management business.

“I don’t think it is any way indicative of groups like Guggenheim looking to become bigger, because I think everybody in this space is undergoing some kind of consolidation or strategic review,” he says. “Everybody is finding that bigger is better. If you look at the fund management business, the top 20% of funds – the Blackstones and Lone Stars of the world – are finding it to be a very good environment to be going out and raising money, but if you are not at that level and you fall into the middle of the pack, it is very difficult to raise money.”