Corporate overview

Optimum Asset Management S.A. (and related entities) is an independent boutique real estate investment manager, AIFM licence holder, regulated by the CSSF in Luxembourg, which optimises mispriced and mismanaged residential and commercial real estate assets through pro- active asset management.

Established in 2009, Optimum specialises in high-quality, income- producing assets in established property markets focused on Germany, creating value and an attractive risk-reward profile for institutional investors, here including, without limitations, pension funds, insurance companies,family offices and foundations.The company employs a team of highly-qualified real estate, asset finance, capital markets and  banking professionals across offices in Luxembourg (registered office), Berlin, Hamburg (asset management rep office), London, New York and Miami, respectively and currently has €1.5bn* of assets under management. Its unique team, combined with a diversified institutional investor base, allows Optimum to execute quickly on transactions in its target €10m–50m-plus market. Optimum is entirely privately owned by the management team, ensuring the alignment of interests at every level and is managed by following the highest standards of professionality and independence by its directors and conducting officers.

*As of 30 June 2020

Sector forecasts

OFFICE: Pre-pandemic, low unemployment combined with widespread, above inflation wage increases and strong economic growth over several years ensures that both the labour force and occupiers in Germany were in a relatively comfortable position when COVID-19 hit. Prime rents in the ‘Big Seven’ cities remained unchanged in the first half of 2020 and even increased in some areas, such as Hamburg. Space will remain in short supply, especially in upmarket and sought-after locations, as long as vacancy rates do not increase significantly above 5%.

RESIDENTIAL: Germany’s residential sector continues to experience a fundamental supply and demand mismatch, providing significant opportunity to invest in key cities despite the turmoil caused by COVID-19.

Residential has proven to be the most resilient sector in the pandemic, and for investors, the drivers that make Berlin and other major cities in Germany an attractive proposition are as apparent today as they were pre-pandemic. In the short term, resilience in Berlin’s real estate market has been characterised by continued rent payments and largely an absence of defaults, with investors benefitting from safe, stable cash flows during the pandemic.

In the mid to long term, the fundamental supply and demand imbalance is set to continue. The volume of construction activity in Germany’s cities is still inadequate versus an ongoing influx in many cities and their suburbs. This is an issue that has the potential to be made more acute by migration trends post-pandemic, which raises the possibility that the large population made unemployed across Europe as a result of COVID-19 may look to Germany for new opportunities.

Investment principles & strategy

A detailed understanding of German real estate fundamentals alongside proprietary market information generated from its local team provides Optimum with the ability to identify, pursue and acquire investments that best fit the firm’s investment strategy.

Optimum focuses on well-located residential, office and mixed-use assets near major infrastructure and employment centres. The primary target cities are the high growth, supply constrained Berlin market, augmented by Dresden, Hamburg, Leipzig, Cologne and Düsseldorf.

Optimum’s investment programme seeks to preserve cash flow, establish custom asset improvement plans, and create value and enhance cash flow through detailed implementation. This is achieved by leveraging Optimum’s local resources and optimising value via timely exits in line with investors’ needs.

Strategic corporate development

Optimum’s knowledge of the market combined with its expertise in managing the entire property cycle – from location scouting to finance, development, leasing and asset management – has made the company a point of reference for institutional investors worldwide seeking exposure to Germany.

To continue its growth process, Optimum has implemented a three-pillar strategy: continue to attract talented professionals, forecast and anticipate market trends and specialisation in the local market. This strategy, which sets challenging and healthy goals for the entire organisation, allowed Optimum to successfully launch GREF IV, the fourth fund focused on the German real estate market.

Performance verification

Optimum periodically evaluates the performance of each portfolio against the relevant benchmark(s) according to best market standard(s) for each of the vehicles under management. Additional performance information can be provided on request.

COMPLIANCE STATEMENT

Optimum is strongly committed to the highest standards of ethical conduct, corporate governance and integrity, which we believe are vital components to protect the reputation of the company and preserve the ongoing trust of our clients and investors in the company and the financial markets.