Invesco Real Estate (IRE) has acquired an office building at Via Broletto in Milan's historical CBD, in the first Italian acquisition for its pan-European open-ended fund.

Invesco Real Estate (IRE) has acquired an office building at Via Broletto in Milan's historical CBD, in the first Italian acquisition for its pan-European open-ended fund.

The property was acquired from a fund managed by Rome-based Investire Sgr for €34 mln.

IRE said it intends to undertake an extensive redevelopment of the property as part of a 'manage-to-core' strategy to transform the property into a prime asset.

'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,' said Carlo Romanò, IRE’s director of transactions for Italy. 'We believe Via Broletto, upon completion of its full redevelopment programme, will be a unique lease opportunity within the marketplace.'

Via Broletto is located close to Piazza Cordusio, a prime office location in the historical CBD. The property consists of two buildings, built in the 19th century and 1960s respectively, with seven floors, car parking and retail facilities. For over 50 years the property has been the main branch for a banking group, which will be vacating at the end of 2015 as part of a pre-planned relocation, prior to IRE's redevelopment project.

Romanò continued: 'We anticipate the recovery of the historical CDB office market in this specific location, where grade A assets are under-supplied and cannot meet the demands from corporate occupiers. We are very excited about Via Broletto also for the fact that its rare large floor plate of 1,200 m2 across the majority of its floors is quite unique and is one of the asset’s main attractions. We believe that following the buildings' redevelopment, which will begin in Q1 2016, the asset will fit perfectly, in terms of size and location for occupiers looking for top quality spaces within a landmark property.'

The legal advisor to IRE was Francesco Sanna, partner of K&L Gates. Gabetti Property Solutions acted as property advisor to IRE.