The real estate arm of Italian insurance giant Generali is investing some EUR 100 mln to convert an office building in the eastern part of Milan into 120 residential units, Giovanni Paviera, CEO of Generali Immobiliare Italia Sgr told PropertyEU in an interview.

'This initiative is part of ongoing efforts to adapt our portfolio to local market needs,' Paviera said, adding that the area houses a number of residential buildings which were redeveloped into offices back in the 1970s and which are now being reconverted into housing, as occupiers become more and more selective regarding their office locations.

Located at Via Piranesi 44, the scheme is owned by the group's Cimarosa real estate fund and offers some 11,000 m2 of office accommodation. It was previously occupied by the Milan headquarters of media conglomerate Sky before the company relocated to Santa Giulia. The plans envisage the demolition of the existing asset and the construction of three residential towers offering 5,000 m2 each across 10 storeys.

Construction work is due to start next month, with completion of Phase I expected for early 2013.