UK-based fund manager Schroders has acquired Blue Asset Management, a German real estate boutique, for an undisclosed sum.

Munich-based Blue oversees €1.2bn in assets in Germany, Austria and Switzerland.

The business has staff strength of 17, all of whom will now become part of Schroders Real Estate.

Its founding managing directors Artus Pourroy, Thomas Wiegelmann and Tino Lurtsch will also move to Schroder Real Estate as part of the deal.

Schroders believes the takeover to be a significant step in growing its private assets operations.

The acquisition will not lead to any management change for customers of Blue, Schroders said.

Schroder Real Estate global head Duncan Owen called Blue a “great fit”, adding that the two firms have similar cultures.

Owen noted: “This acquisition provides us with a strong team of real estate professionals and an additional office in Germany (Munich), which is the largest real estate investment market in continental Europe.

“The strengthened footprint across Germany, Austria and Switzerland will complement our existing teams across Europe and our wider global real estate platform.

“This expanded team will help us support the active management of new investments and existing funds for clients.”

Earlier in 2019, Schroders announced the purchase of Singaporean asset manager Thirdrock Group’s wealth management business.