NatWest has bought the office block it occupies in central Manchester for £292m in the biggest property deal outside London this year.
The Pension Protection Fund (PPF) today announced it had sold One Hardman Boulevard in Spinningfields to the banking giant.
The 350,000 sq ft building was completed in 2004. It includes nine floors, as well as two basement levels, and was pre-let to the then RBS Group, now the NatWest group, ahead of its completion.
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The deal was brokered by CBRE. PPF said the deal was "the largest to take place outside of London this year".
Barry Kenneth, chief investment officer at the PPF, said: “Our investment in One Hardman Boulevard has been incredibly important to us. We are constantly looking to deliver the best returns for our members and this particular investment has been a key part of our real asset strategy.
"By exiting at this stage, we’re realising attractive valuation alongside the returns that we have earned during the holding period. The time left until the lease expires also meant that the asset was becoming a less effective contributor to our liability hedging strategy.”
“Our investment strategy is fundamental to securing strong returns for our scheme members and this particular asset has done just that. It’s exciting to see the returns produced from this innovative part of our strategy.”
NatWest has been approached for comment.
