The prime retail asset, which is located at Via della Spiga 26 in the heart of the city’s Quadrilatero della Moda, was executed via a fund managed by Savills Investment Management and has been sold to Hines and Dutch pension fund manager PGGM. Comprising 12,000 sq m, the space will now be transformed into a new luxury retail and office mixed-use building through a comprehensive refurbishment.

Marco Montosi, Director in the Capital Markets team for Savills in Italy, said: “Via della Spiga presents a unique opportunity to create a dynamic mixed-use destination in the heart of Milan. The deal serves to confirm that appetite for landmark retail assets remains strong in Milan – especially for value-add opportunities such as these. We are pleased to have agreed a deal with Hines and PGGM to harness the asset’s potential to create a new retail and office offer in a superb location.”