PATRIZIA completes sale of Manchester office asset for £45.1m
Transaction follows recent disposals by PATRIZIA’s UK Value 2 in Edinburgh and Cambridge.
- The yield on the sale of Peter House was 5.12%
- Property has been refurbished and benefitted from significant local area regeneration
Augsburg/Manchester, 20 February 2019. PATRIZIA Immobilien AG, the global partner for pan-European real estate investment, announces that its ‘UK Value 2’ fund has completed the sale of Peter House, an office asset in Manchester, to BP Pension Fund for £45.1 million. The transaction price reflects a yield of 5.12%.
Peter House comprises 94,654 sq ft 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 local investment of more than £430 million. Peter House is occupied by Spaces, the flexible and collaborative working space brand owned by IWG.
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.”
PATRIZIA was advised by King Street Commercial and CBRE, while Christopher Dee represented BP Pension Fund.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe for more than 35 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages around EUR 40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.
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