BP Pension Fund has bought a 94,654sqft office asset in the northwest of England from Patrizia Immobilien for £45.1m (€51.9m).

Patrizia’s UK Value 2 fund sold Peter House office in Manchester to the £26.15bn pension fund.

Patrizia said the refurbished building is occupied by flexible workspace provider Spaces.

Kim Sardar, a 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.”

As previously reported, the UK Value 2 fund sold the 1 Tanfield office complex in Edinburgh and the Cambridge Research Park. Patrizia said it also sold an asset in Erith.

Sardar said the fund has so far sold four assets and generated average geared returns of 28% internal rate of return and 2.3x equity multiple and resulting in 30% of investors’ committed equity being returned.