Real IS has made its first investment for its new Themenfonds Deutschland II fund, buying a mixed-use property development in Munich for €190m.
The German company aquired the project on Leuchtenbergring 20 from Münchner Grund Immobilien Bauträger, a subsidiary of Austrian UBM Development.
The open-ended Themenfonds Deutschland II was launched in June to invest mainly in German office and retail assets, with some exposure to residential, hotel and logistics markets.
The building, which is expected to be completed next year, will have a total rental area of approximately 35,000sqm, and six upper and two basement floors with 387 underground parking spaces.
Jochen Schenk, member of the Real IS board of management, said: “Through the acquisition, we have taken a rare opportunity of buying a new office and retail property let long-term to prestigious companies such as Scout 24, Zweirad-Center Stadler and the four-star Holiday Inn hotel.
“This property development in Munich is ideally suited to the core/core-plus strategy… and gives our investors a quick first capital call.”
Schenk added: “The property development is situated in a very dynamic environment of Munich. As a Munich-based company and active fund service provider in many countries, we consider it particularly important for our investors to participate in the city’s growth.
“This aspect and numerous other property developments in the eastern part of the city mean that the location is set to benefit from a sustainable increase in value.”