Patrizia sells Manchester office property for €51.8m (GB)

Patrizia sells Manchester office property for €51.8m (GB)

Patrizia Immobilien AG, acting on behalf of ‘UK Value 2’ fund, has completed the sale of Peter House, an office asset in Manchester, to BP Pension Fund for €51.8m (£45.1m). The transaction price reflects a yield of 5.12%. The property comprises 94,654ft² and is located on St Peter’s Square in Manchester’s established business district. The asset has been refurbished through an active asset management strategy, while the surrounding area has also been subject to a comprehensive renovation and repositioning following a local investment of more than €494m (£430m). The asset is currently occupied by Spaces.

 

Kim Sardar, Fund Management Director at Patrizia, commented: “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.”

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