German investor Patrizia Immobilien has announced that its UK Value 2 Fund has completed the disposal of Manchester office building Peter House to BP Pension Fund for £45.1m, reflecting a yield of 5.12%.
Peter House comprises 94,654 sq ft and is located on St Peter’s Square. As the area became a hotspot for development, with One and Two St Peter’s Square opening their doors in recent years, the owner had refurbished the building before marketing it at £44m in 2018, BP’s interest being revealed in December.
The office floors of the building are occupied by Spaces, the flexible and collaborative working space brand owned by IWG.
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.”
Patrizia was advised by King Street Commercial and CBRE, while Christopher Dee represented BP Pension Fund.