AXA Real Estate has acquired an office property in Milan for €44 mln on behalf of a €350 mln Italian regulated fund backed by two AXA companies.

AXA Real Estate has acquired an office property in Milan for €44 mln on behalf of a €350 mln Italian regulated fund backed by two AXA companies.

The 13,317 m2 building, known as U10, was acquired from Italian developer Brioschi Sviluppo Immobiliare. The property comprises 10 floors which are fully let to a number of international institutions.

U10 is situated in the Milanofiori Nord business hub, eight kilometres south of the city centre. The building has applied for Leadership in Energy & Environmental Design (LEED) certification.

The new fund is a dedicated investment vehicle established by AXA Real Estate on behalf of Italian companies, AXA Assicurazioni and AXA MPS. The fund’s primary investment focus is on the acquisition of high quality, well-let commercial real estate in Europe.

Nathalie Charles, head of asset management and transactions for Southern Europe at AXA Real Estate, said: 'Having been a first mover back into the Italian real estate market through our acquisition of the Bodio Center in June last year, this acquisition and the launch of this new Italian-focused fund are further evidence of our belief in the positive long-term prospects of the Italian real estate market and a noticeable shift in investor sentiment towards the country.'

Alessio Lucentini, head of Italian asset management and transactions at AXA Real Estate, added: 'This is a high-quality and well-located asset with a strong tenant line-up and its acquisition is demonstrative of the importance of having a dedicated in-house local team to successfully access off-market deals to create value for clients.'

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