Optimum Asset Management, the boutique real estate investment management firm, has announced the launch of its fourth German real estate fund, targeting a size of €250-300 mln.
German Real Estate Fund IV (GREF IV) will seek to acquire a diversified portfolio of residential and commercial properties in Germany, with a focus on the Berlin market.
Targeting €250-€300 mln, GREF IV will seek to add value to well-located residential and office assets near major infrastructure and employment hubs. The primary target area is Berlin, with selected investments in high-growth, supply-constrained cities such as Hamburg, Dresden, Leipzig, Cologne, and Düsseldorf.
GREF IV is Optimum’s fourth German real estate fund with a focus on optimising mispriced and mismanaged residential and commercial assets. With the support of its 12-strong Berlin team, the firm has completed over €1 bn of real estate transactions in the region since 2006.
Alberto Matta, founder of Optimum Asset Management, said:'“We are truly at home in Germany. We have invested successfully here for over a decade, and the factors that attracted us at the beginning still ring true today. Germany continues to benefit from a resilient economy, characterised by growth in services, public sector, and the housing market, whilst maintaining global competitiveness as a leader in macroeconomic stability and innovation. The region is also home to an attractive real estate market, represented by a strong occupier base and rising investment volumes.'
The firm’s track record includes Property I, the Berlin-focused real estate fund, which was fully realised in 2014, achieving an IRR of 19%. Optimum’s Property II (2011 vintage) and Property III (2014 vintage) are centred on Berlin and Potsdam, with additional properties in Dresden forming part of the Property III portfolio. Property II and Property III have reported a total return of 250% and 149% since inception, respectively. Realised assets have achieved an IRR ranging from mid-teen to 30+%.
While most institutional investors focus on assets above €40 mln, Optimum typically targets smaller assets by focusing on properties in the range of €10 – 40 mln. As a result, Optimum benefits from less competition and typically create portfolios to be sold to yield-hungry institutions.
