American hedge fund BlueMountain Capital Management closed its Spain-focused venture, Optimum III Value-Added Housing, after a period of strategic divestments. The vehicle, in which BlueMountain held an 83 percent stake, completed the sale of 51 homes, 36 parking spaces, six warehouses, and two other assets across Madrid, Barcelona, Pozuelo de Alarcón, Terrassa, Rubí, and l’Hospitalet de Llobregat. The total proceeds reached 26.59 million euros, with the wind-down concluding in 2022.
Biggest disposals included four houses and 27 parking spaces on Avenida de la Carrera 5 in Pozuelo de Alarcón for 8.60 million euros, and two assets on José Abascal Street in central Madrid for 4.75 million euros. In Barcelona, seven homes on Calle Aragó 309 sold for 3.41 million euros, while three apartments on Calle Calaf 46 fetched 2 million euros. Other notable sales included seven houses on Calle Magallanes 57 along with four parking spaces and six warehouses in Rubí for 1.3 million euros, and three houses with five parking spaces on Calle Concepción Arenal 89 in Terrassa for 433,000 euros. Additionally, 12 houses on Plaza Europa 13-15 in l’Hospitalet de Llobregat were sold for 4.49 million euros, and five houses at 25-27 were disposed of for 1.57 million euros.
Who is Optimum III?
Optimum III Value-Added Housing originated from a joint venture between BMB Investment Management, a real estate investment management platform, and BlueMountain Capital Management, a U.S. investment firm. Established in 2017 and listed publicly, the partnership aimed to deploy up to 100 million euros in the purchase of residential assets in Barcelona and Madrid. The focus centered on acquiring housing with high upside potential, seeking to unlock tangible value through active management and redevelopment opportunities.
In its final regulator filing, the vehicle was indicated to be largely owned by BlueMountain, which held 82.73 percent, with Itzarri, the Basque Voluntary Social Welfare Organization for Workers, owning 9.25 percent. In October 2022, the majority partner signaled an intention to exit its stake and appointed Arcano Partners as financial and real estate advisor to facilitate the potential sale.
Gesvalt’s appraisal, as of June 30 of the previous year, placed Optimum III’s asset base at 119.18 million euros. Disposals completed in the first half totaled 10.53 million euros. The period showed inflows exceeding five hundred thousand euros and a net profit near one million euros, driven by a substantial asset revaluation that refreshed the portfolio’s value and appeal to investors.
Gesvalt assessment, 2023