German Real I.S. AG has launched a new closed-ended private AIF. The “Real I.S. Australia 10” participation offer is investing in the “40 Macquarie Street” office property which was built in 1997 and completely refurbished in 2014. The building is situated in the Barton government district of Australia’s capital city of Canberra.
The fully let office property has three floors with a rental area of 5,572 sq m and 67 parking spaces in the parking garage. Eight tenants, including domestic and international companies, are currently in residence in the office complex.
The three largest tenants in the property are Australian Strategic Policy Institute Ltd, the law firm Maloch Pty Ltd and the trade association Croplife Australia Ltd.
“Australia’s economy has seen uninterrupted growth for 27 years. We assume that interest rates will stay at the present level and that economic growth will remain unchanged at a high level. The demand for office space in particular continues to run strong. The fundamental situation of Australia’s large office markets therefore bears positive comparison with German A cities, with even higher purchase yield being achieved in Australia,” explains Jochen Schenk, CEO of Real I.S. AG.
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“Moreover, as the capital city and administrative headquarters of the Australian government, Canberra has a high proportion of government and government-related tenants and is therefore relatively immune to fluctuations in the economy. This makes investing in office real estate in Canberra attractive. Our intention with our tenth Australia fund is to enable our investors to participate in this real estate market,” Jochen Schenk adds.
The “Real I.S. Australia 10” fund is to run until mid-2030 and have an overall investment volume of around AUD 37.5 million, including the premium. The recommended minimum investment amounts to AUD 20,000. The target over the term of the investment fund, is an average payout in AUD of 4.75 percent p.a. in relation to the equity capital (excluding the issuing premium) after Australian taxes, but without taking the effect of the progression clause into consideration.