Invesco Real Estate has bought a 9,400sqm office building in Milan for its pan-European core strategy.
The real estate manager has acquired the fully-let seven-storey Palazzo Turati building from Italian fund manager COIMA SGR for an undisclosed sum.
The building, located at Via Meravigli 7, has been let to Milan Chamber of Commerce since 1954. The asset was built in 1873 and underwent refurbishment in 2015.
Palazzo Turati was purchased in 2015 by Coima and Sofaz, the sovereign wealth fund of Azerbaijan, via the Sofaz Italy Fund.
Carlo Romanò, transactions director in Italy at Invesco Real Estate, said: ”Via Meravigli 7 is an exceptionally well-located cornerstone asset in the heart of Milan’s central business district right next to Piazza Cordusio, Milan’s most renowned office area.
“Demand for grade A office space in Milan continues to be strong amid tight supply conditions, so we are very pleased to have been able to secure this asset.”
Jonathan Pierce, senior director, fund management at Invesco Real Estate, said: “Our strong local presence has delivered once again, adding this, our fourth high-quality asset in Milan to the pan-European core strategy.
“The overall scale and foundations of our core strategy facilitates a portfolio approach, enabling us to acquire shorter income at an appropriate price, whilst ensuring any risk is mitigated through the fundamentals of location and building quality.”
Manfredi Catella, CEO of Coima SGR, said in the last 24 months Coima has invested over €1.5bn euros and disposed over €700m, yielding an average net return of 15%.