Logistics facility at Airport City Manchester sold for £12.2m

Airport City Manchester, the joint venture commercial development transforming the area around the North’s busiest airport into a £1bn business hub, has secured a buyer for the 130,000 sq ft logistics facility ALPHA.

LaSalle Investment Management has agreed to acquire the centre, located within Airport City’s flagship Global Logistics scheme, for £12.2m on behalf of the Greater Manchester Pension Fund (GMPF).

ALPHA, which is still under construction, will comprise units of 17,500 sq ft to 35,000 sq ft across a single terrace.

Businesses will be able to move in from January next year.

LaSalle asset manager Katie Hynard said: “This is an excellent example of the acquisitions that we are making on behalf of GMPF, aligned with their strategy for UK investments.

“Average industrial enquiry levels for the north-west region have remained stable over recent years and South Manchester has always proven popular for occupiers due to its proximity to strong road and transport links.”

She added: “As a result, the occupational demand for these units is strong given the limited supply of logistical space of this nature.”

Lynda Shillaw, the CEO of MAG Property, which is part of airport operator Manchester Airports Group (MAG), commented: “This deal to forward sell ALPHA marks yet another positive milestone for Airport City Manchester.

“We’re continuing to receive strong interest from the occupational market and investor confidence in the development remains strong.”

Beijing Construction Engineering Group International (BCEGI), the company building the ALPHA facility, is due to complete work on site by the end of the year.

MAG, BCEGI, GMPF and construction services firm Carillion PLC are the joint venture partners behind Airport City.

Cllr Kieran Quinn, GMPF chair, said: “We’re thrilled to be able to announce our purchase of ALPHA. We’re already heavily involved in Airport City as a joint venture partner.

“The vendor ran a hotly contested open market sales process via CBRE and JLL for ALPHA and we’re very pleased to have secured the asset for GMPF; we look forward to welcoming our first tenants.”

He continued: “This shows the success of the Greater Manchester Pension Fund, which is the largest Local Government pension fund in the country and managed by Tameside Council, in achieving significant investment returns to pay its pensions promises to its members, whilst delivering infrastructure and jobs for Greater Manchester.”

Real estate firms CBRE and JLL served as joint agents for the vendor.

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