Real I.S. has invested around EUR 90 mln on the purchase of an office project in Regensburg, Germany through its new German-focused investment fund. The investment volume includes EUR 47 mln of Real I.S.' own capital.

Real I.S. has invested around EUR 90 mln on the purchase of an office project in Regensburg, Germany through its new German-focused investment fund. The investment volume includes EUR 47 mln of Real I.S.' own capital.

The property has already been fully leased on a long-term rental agreement to E.ON Bayern, a regional energy provider. E.ON will locate its headquarters and 1,000 staff in the building. The rental agreement runs through to the end of 2026 with a renewal option for three times five years, according to the German real estate investor.

Andreas Heibrock, a board member at Real I.S., said that the company sees 'great future prospects for Regensburg', one of the largest cities in Bavaria. 'In addition, the first-class quality of the tenant and the long-term rental agreement have convinced us to realise this project.'

The five-storey property will provide 28,300 m2 of rental surface with an adjacent 600-space parking garage. The building, which will be built according to green standards, is expected to be delivered by the end of October 2011. The scheme will be located in the Gewerbepark West business area, which also houses the head offices of the Regensburg savings bBank and the German Bundesbank.

The new fund will seek to generate a yearly return of 6%.

Last week, the company also bought a new office building in Düsseldorf rented on a long-term basis to the federal government for over EUR 71 mln. The seller was Warburg-Henderson Kapitalanlagegesellschaft.