UK real estate private equity fund manager Moorfield Group and Highbridge Properties have sold a 125,912sqft office building in northeast England for £25m (€27m).

Moorfield – which sold the asset on behalf of the opportunistic Moorfield Real Estate Fund IV (MREF IV) fund – said they have completed the sale of the Zeta building on Cobalt Park in Newcastle upon Tyne, to an unnamed buyer.

The building was recently let to UK technology firm The Sage Group.

Originally known as Cobalt 23, the property was acquired by MREF IV and Highbridge in 2017, following which they undertook a repositioning of the asset, with improved landscaping and a rebranding as the Zeta building.

Charles Ferguson-Davie, CIO of Moorfield Group, said this investment has performed well for its investors with an earlier than anticipated sale.

“We saw this as an opportunity to reposition the property, taking advantage of the supply and demand imbalance for high quality offices in the area, and the attractions of Cobalt Park, to meet the needs of occupiers.

“It marks the team’s latest success for our UK office strategy, which has seen us acquire, refurbish, lease and then dispose of some 3m sqft, or £1bn, of office space in London, Manchester, Birmingham, Leeds, Newcastle, Glasgow and Edinburgh.”

Guy Marsden, director of Highbridge Properties, said: “Cobalt Park is the largest office park in the UK, employing over 14,000 people and benefiting from excellent local infrastructure.

“Providing 1,618,000sqft of high-quality office space in a 250-acre parkland setting, it is home to a world-class occupier base including P&G, Accenture, Sage, IBM, Santander, EE, Siemens, Leeds Building Society and the NHS.”