The Mayfair Capital Property Unit Trust (“MCPUT”), a fund managed by Schroder Real Estate Managers (Jersey), with Mayfair Capital Investment Management as the property adviser, has completed £45.5 million of transactions as part of a repositioning of its portfolio towards office and industrial assets and deploying new equity of £18m.
MCPUT has acquired office buildings in Oxford and Egham and industrial investments in Redditch, Liverpool and Ashford for a total sum of £31.8m and disposed of out of town office buildings in Exeter and Bristol and retail units in Edinburgh and Glasgow totalling £13.7m. The transactions increase the size of the fund to 42 assets with a value of £230 million.
The acquisitions comprise:
- in Oxford, the Hinshelwood Building on Oxford Science Park for £9.6 million, which reflects a net initial yield of 6.25%. The striking two-storey, Grade A office building provides 31,070 sq ft and is let to TripAdvisor until September 2020 at a rent of £20.50/sq ft
- in Redditch, two well-specified distribution facilities in the established industrial location of Moons Moat from clients of Aberdeen for £5.9 million, which reflects a net initial yield of 6.5%. The units on Oxleasow Road total 107,000 sq ft and are let to Huegli UK until April 2026 at a rent of £4.10/sq ft
- in Egham, Nexus House, next to the train station, from Hempel Estates for £4.65 million, which reflects a net initial yield of 5.8%. The 12,200 sq ft office building, which has recently been comprehensively refurbished to a Grade A specification, is let to three tenants at an average rent of £24.50/sq ft
- in Liverpool, a well-specified distribution unit at Whiston Enterprise Business Park from Ashtenne for £4.7 million, which reflects a net initial yield of 6.0%. The 94,700 sq ft unit is let to Liverpool Football Club until May 2025 at a rent of £3.17/sq ft
- in Ashford, units A-D and H at Ashford Business Park from CPF Nominees for £6.9 million, which reflects a net initial yield of 6.5%. The five units total 82,000 sq ft are let to two tenants, Sauflon Pharmaceuticals and Dental Sky Wholesaler, at an average rent of £5.76/sq ft
The sales comprise:
- in Bristol, Building 440 Bristol Business Park to AW James for £6.8 million, which reflects a net initial yield of 5.75%. The two-storey office building provides 21,075 sq ft and is let to Motability Operations at a rent of £20/sq ft until September 2026
- in Edinburgh, two retail units and an office suite at 21-25 Frederick Street to a private investor for £3.9 million, which reflects a net initial yield of 6.3%. The units total 7,400 sq ft and are let to John Dickson & Sons, Laing the Jeweller and Meetings & Events at rents which equate to £120 Zone A on the retail and £13.67/sq ft on the office space
- in Exeter, Vanguard House at Matford Business Park for £1.5 million, which reflects a net initial yield of 6.9%. The two-storey office building provides 8,830 sq ft and is let to BDW Trading, trading as Barratt Homes, until December 2022 at a rent of £10/sq ft
- in Glasgow, 159/165 Sauchiehall Street to Kames Capital for £1.45 million, which reflects a net initial yield of 9.0%. The 2,674 unit is leased to TZ Stores, trading as Tiger, until November 2022 at a rent of £100 zone A
Robert Palmer, Chief Investment Officer at Mayfair Capital, commented: “These transactions were a repositioning exercise. The five acquisitions provide the fund with further exposure to the strong south east office and Midlands and north west distribution markets, which all offer strong rental growth prospects and attractive yields.
“The four disposals are of three of the smaller assets, Exeter, Edinburgh and Glasgow, in the portfolio and an office building in Bristol, which was one of the first acquisitions for the fund and where our business plan has been completed”.
Graeme Rutter, Head of Schroder Real Estate Capital Partners, said “We are delighted with the recent transactions made by the team at Mayfair Capital. Business plans have been successfully concluded and sales proceeds and new equity have been deployed into our favoured market segments”
Mayfair Capital was represented by Chris Freer-Smith (Oxford), Fairlie Real Estate (Redditch), Lambert Smith Hampton (Egham), B8 (Liverpool), Joiner Cummings (Ashford), Knight Frank (Bristol), Eric Young & Co (Edinburgh), JLL (Exeter) and Cushman & Wakefield (Glasgow).
Launched in June 2010, MCPUT has performed strongly against the AREF/IPD UK All Balanced Property Funds Index. In the three years to September 2015 MCPUT produced a total annual return of 13.25% per annum against its benchmark of 11.7% per annum.
For further information, please contact:
Mayfair Capital Investment Management
T: 020 7291 6664
Notes to Editors
Mayfair Capital Investment Management www.mayfaircapital.co.uk Mayfair Capital is an independent, owner-managed, UK real estate investment management business. Founded in 2002 and headquartered in London, Mayfair Capital is authorised and regulated by the FCA. Its management board, which is chaired by Stephen Musgrave, includes William Hill (non-executive director), James Thornton (chief executive officer), Robert Palmer (chief investment officer), Ned Pumphrey (fund director) and James Lloyd (director of business development & marketing). Mayfair Capital serves a diverse client base, through its discretionary and advisory funds, which include The Property Income Trust for Charities, Mayfair Capital Property Unit Trust, Mayfair Capital Commercial Property Trust, MC Property Growth Fund No 2 and Mayfair Capital Residential 1.