M&G Real Estate has has acquired a central Berlin office asset for €94.1 mln from an entity managed by JP Morgan Asset Management.
Comprising two adjoining buildings with four floors and two basement levels, the office is let to tenants including BImA (the Institute for Federal Real Estate) and Paypal.
'Key markets in Europe, and especially Germany, are now experiencing stronger tenant demand and take up, which is fuelling rental growth,' commented David Jackson, fund manager at the real estate fund management arm of M&G Investments. '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.'
M&G Real Estate said it had also secured a new tenant at its office asset in central Cologne. The 20,413 m2 office building, which was formerly the headquarters of Lufthansa, has now been leased for a fixed term of 15 years to a department of the German Federal Government.
M&G Real Estate’s European core property strategy has deployed over €1bn of capital since March 2015, with acquisitions made in Denmark, France, Germany, Italy and Portugal.
Earlier this year, M&G Real Estate invested €140 mln in the acquisition of a 34,320 m2 shopping centre and office complex, the Luisenforum Shopping Centre in Wiesbaden.
'We continue to focus on Continental Europe by bolstering our investment capability and expanding our presence through new offices and senior appointments – ensuring we are well placed to act on emerging investment and asset management opportunities, to drive long-term income driven returns for our investors,' concluded Jackson.
