German listed property company IVG Immobilien has closed the acquisition of a mixed-use building at Via Agnello 18 in the city centre of Milan for a value believed to be around EUR 45 mln, reliable market sources have told PropertyEU.

The companies first signed a preliminary agreement in February this year.

It is understood that IVG purchased the trophy building, offering some 4,500 m2 of retail and office space in the Northern Italian city, in an off-market deal with the Iref fund managed by Italy's Beni Stabili. Iref is a real estate investment vehicle invested by the GIC sovereign wealth fund from Singapore, insurance group Generali, Dutch pension fund ABP and the Teachers' pension scheme from the UK.

The property is fully let to a range of tenants including one of Milan's most renowned law firms, NCTM.

The operation is in line with IVG's asset turnaround strategy launched in 2009 following the EUR 300 mln disposal of the Maciachini business centre in Milan to Generali. IVG has since been divesting mature properties to focus exclusively on investments in core properties at prime locations.

Last year the company sold two assets at Via Olona and Via Temolo in Milan for a combined EUR 90 mln through its interest in the Petrarca real estate fund, managed by Aedes.

All parties declined to comment.