Mayfair Capital Investment Management, the UK real estate investment manager, announces that its flagship fund, The Property Income Trust for Charities ("PITCH"), has sold the freehold of an office property in Sheffield to Infinity Investments for £2.3 million, which reflects a net initial yield of 8.5% (prior to adjusting for the rent free period).
The property is 2 Europa View, a three-storey building of 20,493 sq ft at Sheffield Business Park, which is close to junction 33 of the M1. It is currently let to Fulcrum Infrastructure Services until 29 June 2016 at a rent of £245,904 a year, which is equivalent to £12/sq ft. A new lease has been completed with Fulcrum for a term of 10 years from 29 June 2016 at a rent of £225,000 a year, which is equivalent to £11/sq ft. Fulcrum has been granted 18 months at half rent from commencement of the new lease.
Simon Martindale, Fund Manager of PITCH, Mayfair Capital, said: "We were pleased with the result of the recent lease extension and the fact that the occupier’s covenant is improving. The sale is in line with our strategy to dispose of smaller assets now that the Fund has passed £470m".
Launched in September 2004, PITCH has outperformed the AREF/IPD UK All-Balanced Property Funds Index (ABPFI) over three months, six months, 12 months, 3, 5 and 10 years to 31 December 2015. The Fund continues to attract new equity from charities - raising £78 million of new subscriptions in the 12 months to 31 December 2015. Delivering a yield of 5.9% PITCH is the highest yielding of the three specialist pooled property funds designed for charities. The Fund was also the equal second-best performing fund in the AREF/IPD All Balanced Funds Index in 2015, returning 14.6% against the benchmark of 12.5%.
For further information, please contact:
T: 020 7920 3150
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), Graham Langlay-Smith (chief operating 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 Trust, Mayfair Capital Commercial Property Trust, MC Property Growth Fund No 2 and Mayfair Capital Residential 1.