Optimum sells Berlin mixed-use complex to housing association

Howoge, the German public housing association, has acquired the asset in a deal which generates a 19% IRR and a multiple of approximately three times the invested capital (MOIC) for Optimum Evolution Fund SIF – Property II.

Situated in the Kreuzberg Nord social conservation area, Mehringplatz 12-14, Friedrichstrasse 246 and Wilhelmstrasse 2-6 consist of 372 apartments, 27 commercial units and its associated parking spaces totalling 28,250 m2.

Built in 1970, the 16-storey apartment tower was the largest residential asset in Optimum’s Property II portfolio following the firm’s acquisition of the site in April 2012.

The firm has since delivered a significant capex programme, investing €6 mln in upgrading windows and insulation of the fac¸ade.

Alberto Matta, founder and managing partner at Optimum Asset Management, said: 'This latest exit, which follows a competitive bid process where a number of compelling offers were received, is testament to the high level of opportunity we continue to see in Berlin and other key German cities.

'We are pleased to conclude this transaction and are confident that the long-term demand drivers combined with a lack of supply will continue to bring new opportunities to create value for our investors.'

The transaction is the fourth and largest exit from Optimum Evolution Fund SIF – Property II, the firm’s second in a series of funds with a focus on residential and commercial properties in Berlin.

In line with Optimum’s recently-launched German Real Estate Fund IV, the fund is focused on well- located residential, office and mixed-use assets near major infrastructure and employment centres. The primary target cities for the latest fund are the high growth, supply constrained Berlin market, augmented by Dresden, Hamburg, Leipzig, Cologne and Du¨sseldorf.

Knight Frank Berlin and Gleiss Lutz acted as advisors to Optimum on the transaction.