Invesco Real Estate has bought an office property in Milan, the first asset in Italy for its pan-European fund.

The investment manager said it acquired the Via Broletto office property, in Milan’s central business district, for its pan-European open-ended fund.

Italian fund manager Investire SGR sold the asset for €34m, according to Italian press reports.

Carlo Romanò, Invesco Real Estate transactions director in Italy, said: “We anticipate the recovery of the historical central business district office market in this specific location, where grade-A assets are under-supplied and cannot meet the demands from corporate occupiers.”

Invesco said the building’s current tenant, a banking group, was leaving the property at the end of this year.

Unicredit is registered as the property’s current tenant.

The company said it would redevelop the property to transform it into a prime asset.

“We are very excited,” Romanò said, “about Via Broletto also for the fact its rare large floor plate of 1,200sqm across the majority of its floors is quite unique and is one of the asset’s main attractions.

“Following the building’s redevelopment, the asset will fit perfectly in terms of size and location for occupiers looking for top-quality spaces within a landmark property.”

The 10,567sqm building, on the corner of Via Porrone, has been redeveloped internally, according to Investire SGR’s website.

Romanò said: “It is extremely rare to find grade-A properties with a modern look and modern facilities in Milan’s historical centre, as the majority of the available buildings could benefit from a light refurbishment.”

On completion of the redevelopment, the asset will be a “unique lease opportunity”, Romanò said.