Specialist real estate investment manager Optimum Asset Management has completed the off-market acquisition of a 1,191 m2 rental property in Berlin, through its German Real Estate Fund IV (GREF IV).
The fund is the fourth iteration in a series of strong performing German real estate funds pursuing both residential and commercial properties in the range of €5 - €40 mln.
Built in 1910 and partially modernised in 2017-2018, the property consists of 22 residential apartments and 2 retail spaces, with good transport links only 350 metres away from the U-Bahn station Hermannplatz.
With this acquisition, Optimum Asset Management said it was demonstrating its commitment to optimising mispriced and mismanaged residential and commercial assets close to major infrastructure and employment hubs.
The GREF IV fund targets a total size of €350 mln, with the primary target area being Berlin with selected investments in Germany's high-growth, supply-constrained cities such as Berlin, Hamburg, Dresden, Leipzig, Cologne, and Düsseldorf.
Alberto Matta, chairman and founder at Optimum Asset Management, said: 'The acquisition is a reminder of the strength of Berlin’s unique rental market. The continued improvement and urbanisation of major cities across the country creates attractive opportunities for residential investment.
'Berlin has seen significant inflow of investment to improve both urban and suburban regions. This, combined with a continued supply demand imbalance due to the growing population in major German cities, means we continue to see the significant opportunity to create value in this market.'
With the support of its 12-strong Berlin team, which includes nine German asset managers headed by André Gretsch, Optimum has completed over €1.5 bn of real estate transactions in the region since 2006, establishing tailored asset management initiatives to improve cash flows and create value by timely exits.
