After the murder of King Albert I in 1308, the Habsburgs lost out in the struggle around the German throne, when Frederick the Fair was defeated by his Wittelsbach rival Louis in the 1322 Battle of Mühldorf. In the course of a rapprochement of both dynasties, Otto married Elizabeth of Wittelsbach, a daughter of Duke Stephen I of Bavaria. In 1327 he founded Neuberg Abbey in Styria, on the occasion of the birth of his first son Frederick II, and the Chapel of Saint George in the Augustinian Church in Vienna. When his wife Elizabeth died in 1330, she was buried at the Neuberg Abbey church.