Invesco Real Estate has bought a former parking garage in Milan to convert into a mixed-use scheme.

The €55.2bn manager said it acquired Garage Traversi for its core pan-European flagship strategy for an undisclosed sum.

Built in 1938 and located within the luxury quarter of Milan, the 6,000sqm asset is expected to be converted in the next 18 months.

Jon Pierce, a senior director in charge of fund management at Invesco, said: “The property fits well with our build-to-core program and gives us the opportunity to create a best-in-class building, right in the heart of the luxury quarter of Milan.”

Carlo Romanò, a director in charge of transactions at Invesco, said: “Traversi Garage is a fantastic opportunity within the Milan luxury retail sectors, which our local team has identified as being particularly strong.

“We believe that the outlook for the luxury retail sector remains robust in Milan, as the demand is strongly driven by quality and location, and we see attractive opportunities in the city which fulfil these criteria.”