Italian fund management group Sorgente has completed the acquisition of an office building at Piazza Cordusio in the centre of Milan from insurance giant Milano Assicurazioni for around EUR 105 mln. The purchase was carried out on behalf of Sorgente's Donatello Comparto David real estate fund.

The property offers around 14,000 m2 of space including six stores of office areas and retail accommodation on the ground floor. Milano Assicurazioni, which is part of Fondiaria Sai, Italy's second largest insurance group, said the asset is fully let and offers a gross yield of around 5%.

The sale of the building will result in capital gains of around EUR 61 mln for 2010, according to the seller.

The acquisition is in line with Fondo Donatello's strategy to focus on trophy assets and adds to last year's acquisition of the Alberto Sordi retail gallery in Rome.

Sorgente is one of Italy's largest fund management companies. Earlier this month, the group started fundraising for a new fund, Tiziano, which is aimed at redeveloping an abandoned site in central Rome. Sorgente was awarded the mandate by the municipality of Rome to redevelop the 'ex-Mercati Generali' area, which has potential for over 300,000 m2 of space. The planned investment amounts to EUR 120 mln.