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A closed-ended Fund providing investors with attractive investment returns from Greater London residential property.

A closed-ended Fund providing investors with attractive investment returns from Greater London residential property.

The Fund was established in May 2016 to take advantage of the lack of finance available to residential developers by investing alongside those with an extensive track records in delivering high quality developments in Greater London.

MCR2 aims to deliver returns of in excess of 10% gross by investing in development projects across Greater London but with a preference for Zones 2-5. Projects will be targeted that are either at the ‘affordable’ spectrum of the market where exit sale prices are between £500k and £2m or in multi-unit projects within traditionally strong prime locations where sales values have been rebased to reflect declines in the prime Central London market. Like MCR1 the new Fund will focus on providing a mixture of interest bearing loans and profit participating loans, which will allow developers to gear up to 90% of loan to cost and 75% of gross development value, typically returning in excess of 20% profit to the developer.  

MCR2 is a closed-ended LLP launched in September 2016 with an initial commitment of £17m from a small number of investors. MCR2 is constituted with a 5 year life, but with subscriptions drawn down and returned on a project by project basis, it is intended to utilise the equity only once.

As of June 2017 the Fund has invested in two projects totalling £4.3 million, with a further £10.0 million committed to three further projects in solicitor’s hands, totalling 84% of first close funds.

Further information

Please contact the Fund Manager, Simon Martindale or Jos Seligman Transaction Manager 

Portfolio assets

Worcester Park, Sutton
 

Development of eight houses and four flats

Developer: FRT Developments Ltd

Project Strategy: Redevelopment of an old timber yard to create 2 and 3 bedroom houses with a modern feel within a gated development and refurbishment of four flats, expected to appeal to younger families.

Project Status: Practical completion expected Q4 2017 and sales completion in Q2 2018. Anticipated IRR to the Fund of 19% per annum.

 

Management team

James Thornton

BSc (Hons) MRICS MBA

Chief Executive Officer / Fund Director / Executive Director

James co-founded Mayfair Capital in 2002 and became Chief Executive in April 2014 having previously performed the role of Chief Investment Officer, and is a member of the firm's Investment Risk Committee.

James is Fund Director for Mayfair Capital’s ‘Property Income Trust for Charities’, a bespoke Fund for charity investors. This Fund operates within strong ethical and environmental criteria.

James is also Fund Director for three other Mayfair Capital Funds: ‘MC Property Growth Fund No.2’, ‘MC Residential 1’ and 'MC Residential 2’, both of which are debt funds which provide loans to residential developers in London.

James has 35 years’ experience in UK commercial property. James spent the first 15 years of his career at Jones Lang Wootton, 11 of which were in its investment management division, JLW Fund Management. In 1996, James joined Savills, where he was appointed Director of Fund Management, responsible for a team of 10 managing some £950 million of client funds on an advisory and discretionary basis.

James is approved by the FCA to perform CF1, CF3 and CF30 functions for Mayfair Capital. He is a member of the RICS, the Investment Property Forum, and a Committee Member of the Charity Investors' Group.

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Simon Martindale

BA (Hons) PgDip MRICS

Fund Manager PITCH

Simon is the Fund Manager of PITCH, a bespoke property fund for charities. He is responsible for formulating and implementing fund investment strategy, investor reporting, portfolio analysis and overseeing all acquisitions, disposals and asset management.

Simon is also Fund Manager of three other Mayfair Capital Funds: ‘MC Property Growth Fund No.2’, ‘MC Residential 1’ and 'MC Residential 2’; the last two of which are debt funds that provide loans to residential developers in London.

Simon has 12 years of commercial and residential property experience and prior to joining Mayfair Capital in 2012, worked at DTZ (now Cushman & Wakefield) and Edward Symmons (now LSH). 

Simon is approved by the FCA to perform the CF30 function for Mayfair Capital.

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Jos Seligman

MA (Hons) BSc MBA MRICS

Transaction Manager and Fund Manager MCR2

Jos joined Mayfair Capital in 2015. Alongside Phil Sturdy and Florence Clark he is responsible for acquisition management and appraisals across the Mayfair Capital funds. As the fund manager of Mayfair Capital Residential 2 he is additionally responsible for sourcing, appraising and managing the fund loans.

He was elected a member of the RICS in 2008 whilst working in UK Capital Markets for Montagu Evans. In 2010 he founded Ulysses Investment, an investment and development company specialising in income driven projects and joined Clearbell in 2014 to undertake transactions and assist with the setup of a core plus mandate. Jos holds a History MA (Hons) from the University of St Andrews, Real Estate Finance BSc from Cass Business School and an MBA from the University of Cambridge.

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