A property managed by UBS Asset Management on behalf of Zurich Insurance Group’s Italian arm has paid €27m for a mixed-use asset in Frankfurt.

The manager said the UBS Zurich Italy Real Estate Fund (UBS-ZIREF) has acquired the Schiller27 office from a real estate fund managed by DIC Asset.

Constructed in 1997, the fully-let seven-storey Schiller27 building comprises 3,000sqm of office space and 350sqm of ground-floor retail space.

In July 2016, Zurich Insurance Group’s Italian arm mandated UBS with €400m to invest in European office, retail and industrial assets.

Peter Haltenberger, member of the managing board real estate Germany, said Schiller27 is a high performing investment that offers attractive growth prospects, making it an excellent addition to the UBS-ZIREF portfolio.

“Both the quality of the asset and the strength of its location provide it with highly defensive characteristics and clear visibility of income streams that align perfectly with the fund’s goal of generating strong and stable returns over the long-term for our client.

“We consider this to be an ideal opportunity to provide the fund with exposure to one of Europe’s top five office markets, as Frankfurt continues to draw a growing list of international corporate occupiers amid undersupply of prime stock.”