Real I.S. creates new fund unit

Real I.S. said that it has received approval from the German Federal Financial Supervisory Authority (Bafin) for the launch of a range of real estate investment funds for institutional investors.

The company said that it expects to raise around EUR 400 mln of equity this year for the vehicles, which will include Real I.S. BGV IV, focusing on European office and commercial property, as well as a Germany Retail fund.

Real I.S. has set up a new fund management subsidiary for this purpose, named Real I.S. Investment GmbH (KAG), which will be led by Roland Bittner and Michael Lindemann.

Real I.S. said that it is 'taking account of the growing trend of institutional investors towards selecting investments in areas which fall under German jurisdiction, German financial supervision and a more simple allocation to the real estate portion, as well as transparency'.

Bittner said that the newly created unit 'is the ideal platform for optimally catering to the wishes of our institutional investor customers following the liberalisation of German investment law'. 'The focus of the new funds will be Core and Core+ investments, while the investment focus will be on regions with stable and long-term growth,' added Lindemann.

Last week, Real I.S. also announced that it has successfully closed two funds focusing on France and Germany after raising over EUR 180 mln of equity.