A fund managed by Principal Real Estate Europe has bought an office property in Milan’s office district from Amundi Real Estate Italia SGR.

Principal European Office Fund bought the property located at Via Giovanni Battista Pirelli 18 for €34m. The 7,000sqm office building is fully let to a single tenant.

Late last year, US investment manager Principal Global Investors merged its real estate arm with Internos Global Investors to create Principal Real Estate Europe.

The €600m Principal European Office Fund is a balanced, geographically diversified office property fund with long-term value stability.

The manager said the fund has already invested in Amsterdam, Lisbon, Milan, Paris and Toulouse.

Paul Muno, a managing director and head of investor relations in Germany at Principal Real Estate Europe, said: “This latest acquisition in Italy highlights our team’s ability to source high-quality buildings with excellent potential for value and income enhancement against the background of an extremely competitive market.

“We are currently experiencing an uptick in interest from international investors keen to deploy capital to buy attractively priced assets in Italy.”

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