M&G Real Estate has invested €94.1m in a central Berlin office for its pan-European growth strategy.

The Badensche Strasse building was sold by JP Morgan Asset Management.

The 22,521 sqm building, in the Wilmersdorf district, is let to tenants including the Institute for Federal Real Estate and Paypal.

David Jackson, fund manager at M&G Real Estate, said: “Key markets in Europe, and especially Germany, are now experiencing stronger tenant demand and take up, which is fuelling rental growth.

“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.”

Jackson said M&G has bolstered its investment capability in continental Europe, opening new offices and making senior appointments.

In Cologne, M&G Real Estate said it has leased its office asset in central Cologne to a department of the German federal government.

The 20,413 sqm office building was formerly the headquarters of Lufthansa.

Earlier this year, M&G Real Estate invested €140m in the Luisenforum Shopping Centre in Wiesbaden.