German investor Real I.S. said on Tuesday that it has purchased a new office building in Dusseldorf for its newly launched German-focused fund, Bayernfonds Deutschland 20. Located between the airport and the city centre, the property is rented on a long-term basis to the federal government and was acquired for over EUR 71 mln from Warburg-Henderson Kapitalanlagegesellschaft, according to a company spokesperson.

'For our new Geman fund, the state as a renter highlights a secure rental income for the investors', said Andreas Heibrock, member of Real I.S.'s management board.

The state of North Rhine-Westphalia has fully rented the office building on a 15-year lease with the possibility to extend it twice, each for five years. Under the lease agreement, the management costs are also paid for by the tenant. The seven-floor building provides 18,800 m2 of space, with an additional archiving area in the basement of 3,500 m2 as well as 359 parking spaces.

The new investment vehicle focuses on Germany and has a life term of 12 years. The fund has received equity commitments of EUR 45 mln and with leverage has a spending power of EUR 86 mln. It targets an annual yield of 6% and aims to generate returns of about 171.5% before taxes over the entire period.