Real IS sets up new branches in Paris, Sydney

Munich-based fund manager Real IS has established two new subsidiaries - one in Paris, France and the other in Sydney, Australia - following the strong growth of its portfolios in these two countries, CEO Jochen Schenk told PropertyEU. In France, Real IS now has assets under management totalling EUR 550 mln while in Australia the portfolio is as much as A$1.5 bn (EUR 1.2 bn).

'The idea behind our French subsidiary is primarily to enhance our tenant care and asset management activities for our 16 properties in France and Belgium,' Schenk explained. Paris is Real IS' second-biggest target market in Europe after its home country Germany where it has six branch offices, and Luxembourg.

The French unit will be headed by Catherine Luithlen, who has served as Real IS’ asset manager for France for many years, and who will share the senior management with engineer Johannes Büchlmeir.

Real IS’ new subsidiary in Australia will enable the company to further expand its market leadership Down Under, Schenk said. As the German market leader for Australia funds, Real IS currently holds properties in six public funds in Australia and one institutional investment in Adelaide, and also holds indirect investments through Australian target funds.

Click on the link below to read: 'Real IS eyes new core fund targeting Paris properties'

The creation of an Australian subsidiary was also prompted by recent legal, regulatory and fiscal changes which make it possible to structure tax-friendly investment funds in such a manner that the investment management is carried out by an investment company on location. This new structure will reduce the income tax rate for foreign investors to 7.5% from 30%, Schenk said.

He added that Real IS was 'completely won over' by Australia's appeal as a business location, and that the German fund manager would continue to invest there on behalf of its clients, particularly in the major metropolitan cities such as Sydney and Melbourne, but also Adelaide, Perth and Brisbane.

The new Australia subsidiary will be headed by Vishant Narayan, an Australian citizen who has worked for Real IS for several years, and who brings international real estate investment experience to the job. He will rely on the continued support of the company's previous representative, Heike Morgenroth.

Real IS Gruppe is owned by the German Savings Bank Finance Group, and serves as BayernLB’s asset management and investment fund service provider for real estate. The company has EUR 5 bn of assets under management, primarily in institutional funds under German investment law and public closed-end funds. Other areas of activity include bespoke fund solutions, portfolio management, and the management of institutional international real estate portfolios.