Virtualization of computing resources is becoming increasingly important both in high-end servers and in multi-core CPUs. In a virtualized system, the set of resources that constitute a virtual compute entity should be spatially separated from each other. Dividing the cores on a chip, or the CPUs in a high end server into disjoint sets for each task is a trivial problem. Ensuring that they use disjoint parts of the interconnection network is, however, complex, and in existing methods the requirement of routing-containment of each virtual partition severely degrades the utilization of the system. In this paper, we present an allocation strategy that is based on Up*/Down* routing. Through simulations, we demonstrate increases (in some cases above 30%) in system utilization relative to state-of- the-art in a Dimension Order routed mesh - a topology that is assumed to be widely deployed in Networks on Chip.