Savills Investment Management has acquired two properties in Lyon and Milan for approximately €110m for the investment mandate of a southern German pension fund.
The real estate fund manager said they were the first purchases in France and Italy for the mandate which dates back to 2015.
Previous investments have focused on Germany, with the portfolio also including a property in Luxembourg.
The property in France is a 11,450sqm, fully-let office building in the central business district of Lyon. The building was completed in 2014 and consists of three interconnected parts.
The property has HQE-BBC energy certification and is partially powered by its own photovoltaic panels.
The asset in Milan was acquired in an off-market transaction. It is an 8,870sqm, fully-let mixed-use property that was refurbished in 2021, with retail space on the ground and basement floors and office space on the upper floors.
Andreas Voelskow, director of fund management at Savills Investment Management, said: “The acquisitions demonstrate that even in the current challenging market environment there are attractive opportunities to be taken.
“For the investor, a German pension fund, the focus is on generating stable and sustainable income. Due to the tenant mix with strong credit ratings, the modern facilities and the strategically very good locations, the properties fulfil these criteria and contribute to further diversification.”