Blackstone is buying a German office specialist from IVG Immobilien, acquiring OfficeFirst Immobilien for its Real Estate Partners Europe IV vehicle.
IVG Immobilien last month shelved plans to list the subsidiary on the Frankfurt Stock Exchange, citing market conditions.
The German manager was looking to float €888m of shares in OfficeFirst, which holds a €3.2bn portfolio.
IVG created OfficeFirst in May, appointing Michiel Jaski as chief executive.
OfficeFirst controls a 1.4m sqm predominantly office portfolio.
Its business operations range from purchase to management and improvement and sale.
Anthony Myers, head of European real estate at Blackstone, said: “We are delighted to make another substantial investment in Germany, where we are focused on high-quality, well-located assets in the country’s largest cities.
“OfficeFirst meets that investment criteria, and we are excited to continue working with OfficeFirst in driving value across its portfolio.”
Most of the portfolio is in Germany’s Top Six office markets – Munich, Berlin, Frankfurt, Hamburg, Düsseldorf and Stuttgart.
OfficeFirst has its headquarters in IVG’s The SQUAIRE at Frankfurt airport.
Blackstone’s current office portfolio in Germany totals almost 400,000sqm and includes assets in Frankfurt, Berlin, Hamburg, Munich and Düsseldorf.