German fund manager Real IS has acquired its first office property in Adelaide for a new Australia property fund.

The manager said it has invested A$85m (€52.2m) to buy the 12,300sqm 100 Waymoth Street asset on behalf of the Real IS Australian Institutional Portfolio Funds.

The institutional fund – which is expected to reach a volume of A$400m – plans to focus core on office properties in major Australian cities, with the possibility of adding retail, hotel and logistics properties.

Tobias Kotz, head of client relations and capital funding, said: “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 manage-to-core properties.

“With this acquisition, we very quickly laid the foundation stone for the strategy of our fund following the mandate by our clients.”

Axel Schulz, global head of investment management of Real IS, said: “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.

“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”.

Real IS has been active in Australia for 14 years and currently manages ten properties in Canberra, Melbourne and Adelaide.