German Real I.S. AG has acquired an office property in Adelaide, Australia, with an investment volume of AUD 85 million for a homogeneous group of institutional investors.
The investors have mandated Real I.S. to build up a diversified real estate portfolio in Australia. The portfolio is expected to reach a volume of AUD 400 million. For this purpose, Real I.S. launched a German special fund eligible for property quotas under the name Real I.S. Australian Institutional Portfolio Funds.
The portfolio is to focus on core office properties in major Australian cities, with the possibility of adding retail, hotel and logistics properties.
“With the office property on 100 Waymouth Street in Adelaide, we were able to make the first acquisition for our investors’ investment strategy. We focus on core, core-plus and manageto-core properties. With this acquisition, we very quickly laid the foundation stone for the strategy of our fund following the mandate by our clients”, says Tobias Kotz, Head of Client Relations & Capital Funding.
The office property will generate an average distribution of 5.5% p.a. over the planned term.
“The office market in Adelaide, the capital of the state of South Australia, currently offers a very attractive market environment to raise value for our investors through active asset management”, explains Axel Schulz, Global Head of Investment Management of Real I.S. AG.
“As an active market participant for many years, we have now been able to acquire a very attractive property in a very popular location for our fund”.
The recently refurbished office property was awarded a five-star NABERS (National Australian Built Environment Rating System) rating and has a total lettable area of approx. 12,300 square metres, of which approx. 12,000 square metres are for offices and approx. 300 square metres for retail.