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<?php $localPhone = bp_get_the_site_group_name() ?>;
Remove the semi-colon from the end and that will get rid of the echo problem.
I assume you meant:
<?php $localPhone = bp_get_the_site_group_name(); ?>
The if statement should be:
<?php if ( ($localPhone=
"Manchester") || ($localPhone=
"Test Group") ) {