Deutsche Asset & Wealth Management is in talks over an outsourcing deal for close to $50 billion in real estate assets, as chief executive Michele Faissola continues his bid to improve operating margins at the division he took charge of two years ago.

According to a statement late last night, the fund manager is in exclusive discussions with BNY Mellon over the outsourcing of real estate fund finance, fund accounting, asset management accounting and client and financial reporting functions. The contract covers real estate assets worth $47.6 billion.