Union Investment has made its first real estate investment in Sydney, buying a central office asset.

The German fund manager paid AUD120m (€76.3m) for 155 Clarence Street on behalf of its UniImmo:Global vehicle.

The deal is the Hamburg-based manager’s second in Australia, having bought in Brisbane last year.

The April 2014 deal saw the manager buy the Flight Centre headquarters in Brisbane at development stage.

The project, almost fully let, was bought by Union Investment for its open-ended fund Unilmmo: Europa fund.

Martin Bruehl, head of international investment management at Union Investment, said: “Our investments in Australia reflect the strategy we embarked on three years ago for our real estate funds – greater international exposure, younger properties and broader diversification that includes strong regional markets.”

The 155 Clarence Street property, he said, is a “perfect fit” for the company’s global fund.

The asset is 85% let to a range of tenants.