M&G Real Estate makes key office acquisition in Berlin and secures major new tenant in Cologne

 22 May 2017


M&G Real Estate, one of the world’s largest property investors, has acquired a central Berlin office asset as part of its pan-European growth strategy.

It has purchased the 22,521 sq m ‘Badensche Strasse’ office for €95m 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 strong tenants including BImA (the Institute for Federal Real Estate) and Paypal. Located in Berlin’s Wilmersdorf district, Badensche Strasse is a modern, well-specified and recently refurbished office building.

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.

“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.”

M&G Real Estate has also secured a major new tenant at its office asset in central Cologne. The 20,413 sq m 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.

Thomas Kaechele, Head of M&G Real Estate in Germany, comments: “We are delighted to have achieved such a major new letting of the whole building immediately after expiry of the Lufthansa lease. This demonstrates the strength of the office leasing market in the city of Cologne.”

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 million in the acquisition of a 34,320 sq m shopping centre and office complex, the Luisenforum Shopping Centre in Wiesbaden.

  • Key markets in Europe, and especially Germany, are now experiencing stronger tenant demand and take up, which is fuelling rental growth.

    David Jackson,  Fund Manager

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Notes to Editors

About M&G Real Estate
M&G Real Estate is the real estate fund management arm of M&G and is one of the top 25 real estate fund managers in the world by assets under management, with over £27 billion invested in a broad spread of properties across Europe, North America and the Asia Pacific region (as of 31 March 2017). M&G Real Estate has a sector leading approach to responsible property management, and is committed to assessing and improving the sustainability performance of funds under management.

M&G is the investment arm of Prudential Plc in the UK, Europe and Asia. For more information please visit www.mandg.com/realestate

About M&G
M&G is an international active asset manager, investing on behalf of individuals and institutions for over 80 years. As of 31 March 2017 the firm manages over £275 billion of assets through a wide range of investment strategies across equities, bonds, property and multi asset.

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

The services and products provided by M&G Investment Management Limited are available only to investors who come within the category of the Professional Client as defined in the Financial Conduct Authority’s Handbook. They are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.

M&G Real Estate is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R OHH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. M&G Real Estate Limited is registered in England and Wales under number 3852763 with its registered office at Laurence Pountney Hill, London EC4R 0HH.