AEW has acquired three high street retail units in Italy for around €44m from a Grosvenor Europe-managed fund.

AEW said the assets in central Milan, which have around 1,655sqm of total gross leasable area, are fully let.

The acquisition was made on behalf of the City Retail Fund, which was launched in 2015 to focus on high quality, income-producing assets in European tier-one and capital city centres.

AEW expects to secure equity commitments of up to €800m for the fund, having raised over €415m already, more than its initial target.

AEW said that, with more than €350m of assets under management following the latest acquisition, the fund is now diversified across six countries.

Following AEW’s purchase of the adjacent 851sqm Muji store in July, the fund now has full ownership of one of the most significant and well-positioned retail blocks on Via Torino.

Christina Ofschonka, fund executive of the City Retail Fund, said: “The acquisition of this first-class retail asset, together with the Muji store we acquired in July, demonstrate AEW’s expertise in sourcing prime opportunities by leveraging its network of local teams.

“Going forward, we will continue to diversify the fund’s geographic spread and we already have a number of other prime assets in the pipeline.”

Massimiliano Bernes, country head of Italy for AEW, said: “This is the third Italian investment for the fund, demonstrating our confidence in the market and the opportunities that our strong local sourcing capabilities can provide.”