M&G Real Estate, the London-based investment arm of Prudential, has acquired a central Berlin office building for €94 million.
The 223,000 square foot Badensche Strasse building, in the Wilmersdorf district of the city, was acquired by M&G as part of its pan-European growth strategy.
The building, which is let to tenants including the Institute for Federal Real Estate and Paypal, was sold from an undisclosed fund managed by JP Morgan Asset Management.
“Key markets in Europe, and especially Germany, are now experiencing stronger tenant demand and take up, which is fueling rental growth,” said David Jackson, fund manager at M&G Real Estate.
“As such, core assets in prime locations in Germany continue to be of interest to our pan-European strategy, as evidenced by our new acquisitions, on the back of a trio of purchases in the country in February,” added Jackson.
In recent months, M&G has expanded its real estate activities in Europe as well opening new offices and senior appointments.
In February, the firm invested €205 million in two office buildings and a shopping center in Germany. The largest deal was the €140 million acquisition of the Luisenforum shopping center in Weisbaden, while two office assets, in Munich and Frankfurt, were also picked up for €40 million and €20 million respectively.