Fosun Property has bought its first asset in Italy, investing around €345m in a Milan office building.

The Chinese investor has now completed its purchase of the Palazzo Broggi in the city’s Piazza Cordusio, investing through its Shanghai Forte Land vehicle.

Italian fund manager IDeA Fimit sold the building, which was the headquarters of UniCredit bank. IDeA Fimit had owned the asset since 2008.

ADIA, AXA Real Estate, Blackstone, Cerberus, GIC and Tristan Capital were among bidders for the property, according to media reports.

The 45,000 sqm asset will be redeveloped, with retail, office, hotel and apartment space possibly forming part of the building.

Nick Hendy, senior director of EMEA Capital Markets at CBRE, which advised on the transaction, said the deal is a “great example of the strengthening Italian market”, with the country attracting global capital.

Milan has seen the lion’s share of investment, while early signs of increased international appetite for Italian real estate were evident last year, with investment volumes reaching their highest level since 2008. 

“There’s an increasing push by Chinese investors into new markets,” Hendy said.

Fosun recently agreed to take over London-based European investment manager Resolution.