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LONDON-Hermes has sold the 141,479-sf 100 Barbirolli Square in Manchester to DB Real Estate Investment for over £52 million ($84 million), reflecting an initial yield of 6.5%. The deal reflects a growing trend for German investors to look beyond London at the UK’s regional office markets.

Developed in 1996, the building is considered by many to be the region’s premier office development. It is fully let to Addleshaw Goddard; Ernst & Young and NatWest Bank, with a Pitcher & Piano bar on the lower ground floor. The income is secured until 2017, with a current income of over £3 million ($4.9 million) per year.

DB Real Estate Germany bought the property on behalf of its open-ended fund, Grundbesitz-invest. Managing Director Kurt Mller, said: “The acquisition of 100 Barbirolli Square in Manchester reflects our ambition to further diversify and grow our already substantial UK interests. In future we will be continuing to invest in offices in London and in the major regional markets, but also increasingly consider other sectors such as retail and industrial properties.” Jones Lang LaSalle represented the purchaser and King Sturge the vendor.

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