Key Takeaways
- • The LPPI Real Estate Fund acquired The Globe, a Grade A office building in Manchester's Enterprise City, for an undisclosed price, according to the publisher summary.
- • The 91,840 sq ft building, completed in 2022, comprises ground plus eight upper floors, a ground-floor retail unit and a 6,642 sq ft roof terrace, and holds a BREEAM Excellent rating.
- • Knight Frank Investment Management (KFIM) acted for the fund on the deal, with Knight Frank advising KFIM and CBRE advising the vendor.
- • KFIM's John Styles said the deal executes a strategy across its balanced portfolios to gain exposure to the prime regional office market, where pricing is attractive against the risk-free rate and borrowing costs.
- • KFIM expects rental growth to continue in the medium term, citing focused occupier demand for high-quality space and cost constraints on new development.
Summary
The LPPI Real Estate Fund has acquired The Globe, an office building in Manchester's Enterprise City, for an undisclosed price. The acquisition was reported by BE News and the deal was executed on behalf of the fund by Knight Frank Investment Management (KFIM), which acts as the fund's manager on the transaction.
The asset is a 91,840 sq ft building completed in 2022. It provides Grade A office space across the ground floor and eight upper floors, together with a ground-floor retail unit and a 6,642 sq ft panoramic roof terrace. The building has achieved a BREEAM Excellent rating, which KFIM's Emma Gullifer, portfolio manager, cited as part of its strong ESG credentials alongside a prime Manchester location. Gullifer said the property offers opportunities to create value through active asset management and is well positioned to benefit from demand for well-located office space with modern amenities.
John Styles, chief investment officer at KFIM, said the transaction executes a strategy the firm is applying across its balanced portfolios to gain exposure to the prime regional office market. He stated that pricing in this segment is attractive relative to the risk-free rate and borrowing costs. Styles added that occupier demand is concentrated on high-quality space and that cost constraints on new development should support rental growth in the medium term.
Louise Warden, head of real estate and indirect infrastructure at LPPI, said the acquisition supports the aim of building a resilient portfolio delivering long-term returns for the fund's partner funds, and that LPPI looks forward to continuing its partnership with KFIM. Knight Frank advised KFIM on the acquisition, while CBRE advised the vendor.
The asset is a 91,840 sq ft building completed in 2022. It provides Grade A office space across the ground floor and eight upper floors, together with a ground-floor retail unit and a 6,642 sq ft panoramic roof terrace. The building has achieved a BREEAM Excellent rating, which KFIM's Emma Gullifer, portfolio manager, cited as part of its strong ESG credentials alongside a prime Manchester location. Gullifer said the property offers opportunities to create value through active asset management and is well positioned to benefit from demand for well-located office space with modern amenities.
John Styles, chief investment officer at KFIM, said the transaction executes a strategy the firm is applying across its balanced portfolios to gain exposure to the prime regional office market. He stated that pricing in this segment is attractive relative to the risk-free rate and borrowing costs. Styles added that occupier demand is concentrated on high-quality space and that cost constraints on new development should support rental growth in the medium term.
Louise Warden, head of real estate and indirect infrastructure at LPPI, said the acquisition supports the aim of building a resilient portfolio delivering long-term returns for the fund's partner funds, and that LPPI looks forward to continuing its partnership with KFIM. Knight Frank advised KFIM on the acquisition, while CBRE advised the vendor.
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