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.