Patrizia’s UK Value 2 fund has sold Peter House in Manchester for £45.1m to BP Pension Fund.
The transaction price reflects a yield of 5.12% for the 94,654 sq ft 10-storey office building located on St Peter’s Square.
IWG’s flexible co-working brand Spaces occupies 85,653 sq ft on a 15-year lease that it signed at the start of 2018.
Other tenants at the property include Ask Ventures, Giorgio One, Papa John’s and Terence Paul.
Kim Sardar, fund management director at Patrizia, said: “We acquired Peter House because it was a landmark asset in an improving area of Manchester that was going to be the beneficiary of investment.
“Alongside that, we have successfully implemented an asset management plan that has delivered an institutional-grade asset, the quality of which is reflected in the transaction we’ve been able to achieve on behalf of our clients.
“We are very pleased with the strong performance of the fund, with the four sales to date (Erith, Cambridge, Edinburgh and Manchester) generating average geared returns of 28% IRR and 2.3x equity multiple, and resulting in 30% of investors’ committed equity being returned.”
Patrizia was advised by King Street Commercial and CBRE, while Christopher Dee represented BP Pension Fund.
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