US private equity investment firm HIG Capital announced on Wednesday that one of its affiliates recently acquired an 8,600 m2 trophy office building in the historic centre of Milan.
Although financial details were kept confidential, Italian newspapers put the total investment for acquiring and renovating the building at around €50 mln.
The property will be re-let following completion of the redevelopment works.
Gabriele Magotti, principal at HIG Europe Realty Partners in Milan, said: 'The strong demand in the historic centre of Milan for both high-street retail and office tenants makes the restoration of these buildings an attractive investment proposition.'
'Our focus in Italy is on high quality assets with the potential of becoming highly liquid institutional product as the result of the envisaged value-add initiatives,' added Riccardo Dallolio, managing director and head of HIG Europe Realty Partners in London.
Based in Miami, HIG has completed several acquisitions in Italy including the purchase at the end of last year of a retail park in Brindisi, southern Italy.