RREEF Real Estate has bought a central Milan office block for €100m (£74.7m) from the Pirelli Group.

The 153,500 sq ft office block in the historic business district of Milan was bought from Patrimonio Uffici, a fund managed by Pirelli & C. Real Estate Opportunities.

The building, on Via Meravigli near the city’s historic Duoma and Sforzesco Castle, is currently occupied by offices and seven retail shops.

Gianluca Muzzi, co-head of RREEF Italy, said the company had invested because of the strong office market in Italy.

Good fundamentals

‘This unique property on via Meravigli is particularly attractive due to the good fundamentals of the office market in Milan’s central business district where opportunities to acquire assets of this quality are rare,’ he said.

‘Situated in a prime location, with good rental growth potential, we are delighted to add this trophy asset to our growing portfolio of Italian properties.’