Optimum Asset Management and Blackstone have formed a joint to invest in and co-manage an €800m German real estate portfolio owned by a fund established 10 years ago.
The joint venture will allow investors in the 2011-vintage Optimum Evolution Fund SIF – Property II to exit or to remain exposed to the portfolio.
Blackstone and Optimum plan to invest more capital to increase the size of the portfolio, which currently has 30 assets, mostly in Berlin.
Blackstone previously invested in the fund through its Strategic Partners secondaries business in 2018, but the new joint venture involves its direct real estate arm.
Alberto Matta, founder and managing partner of Optimum, said: “We have seen attractive returns from this high-quality portfolio since its creation, which is testament to the strength of the German real estate market and the expertise of our team.
“We are delighted to be working with Blackstone and firmly believe in the continued prospects of this portfolio, which was built using our granular approach.
“We place particular emphasis on sourcing the right assets and managing them correctly. The commitment from Blackstone is an endorsement of the German real estate market, this portfolio and Optimum.”
James Seppala, head of real estate Europe at Blacktone, said: “We are impressed by the exceptional portfolio that Optimum has been able to assemble and believe in the long-term growth of the German real estate market.
“We recognise Optimum’s ability to identify unrealised potential in real estate assets, undertake value-enhancing management initiatives, and to ultimately create sizeable, high-quality real estate portfolios.
“Combining this with Blackstone’s scale and resources will provide our collective investors with a unique opportunity in and exposure to the German real estate market.”
