The Bayerische Versorgungskammer (BVK) has bought its second Milan property asset through a separate account mandate with Hines.

Hines, in a partnership with Italian SGR company IDeA FIMIT, said it bought a seven-storey retail and office building at via Dante 16 for €55m for BVK.

The 6,000sqm building, near Milan’s Castello Sforzesco, is almost fully let.

Hines, appointed by BVK to run a €1.3bn retail investment mandate earlier this year, said the property would undergo redevelopment to create a flagship high street store with office space.

The deal follows the purchase late last year of a 5,100sqm building in Oslo’s Karl Johans gate for €52m.

Lars Huber, co-chief executive at Hines Europe, said: “Italy represents an attractive market with significant potential.

“The quality of the building – coupled with its excellent location and diverse income profile from both retail and office tenants – make this asset a compelling proposition for BVK”.

Hines recently sold its interests in its regulated Italian fund management business to Manfredi Catella, who previously served as Hines’s country head for Italy.

Catella has since founded the COIMA Res Italian REIT, which is being roadshowed in the US and the UK.