Invesco Real Estate has acquired Garage Traversi in Milan, Italy for its core pan-European flagship strategy. The purchase price was not disclosed. The c. 6,000m² asset was built in 1938 and due to its location and architectural features has historically been one of Milan’s notable landmarks. Situated in Via Bagutta, just a few steps away from Via Montenapoleone, Milan’s most renowned luxury shopping street, the building holds a rare retail trading license for large sales areas which are heavily restricted in Milan. The asset is currently under renovation and will be converted in a Class A mixed-use scheme. The opening is scheduled for the second half of 2020. Simultaneously, the area around Via Bagutta is being revamped as the street is viewed as the next natural expansion of the famous Via Montenapoleone and will benefit from expected rental growth.
Jon Pierce, Senior Director – Fund Management at Invesco commented: “We are pleased to secure this ‘destination’ asset which impresses with its combination of a prime location, outstanding architecture and a rare commercial license. The property fits well with our build-to-core program and gives us the opportunity to create a best-in-class building, right in the heart of the luxury quarter of Milan.”
Carlo Romano, Director – Transactions at Invesco said: “Traversi Garage is a fantastic opportunity within the Milan luxury retail sectors, which our local team has identified as being particularly strong. We believe that the outlook for the luxury retail sector remains robust in Milan, as the demand is strongly driven by quality and location, and we see attractive opportunities in the city which fulfil these criteria.”
