Mayfair Capital Investment Management, the UK real estate investment manager, announces that its flagship fund, The Property Income Trust for Charities ("PITCH"), has acquired a modern distribution warehouse in Runcorn, Cheshire, as part of its income growth strategy.
PITCH has bought a 131,960 sq ft unit at Manor Park, a prime 300-acre office and distribution park close to the M56 motorway, from Pin Properties for £11.45 million, which reflects a net initial yield to PITCH of 6.00%. The unit, which includes a 2.1 acre concreted yard, is let to Rehau, a global polymer-processing company supplying products to the construction, automotive, and industry sectors, until October 2028 at a rent of £4.89/sq ft.
The unit is located prominently at the entrance to Manor Park, fronting Blackheath Lane, close to its junction with the Daresbury Expressway (A558). Significant occupiers in the immediate location include Eddie Stobart, DHL/NHS, Lidl, UK Mail, Kuehne & Nagel, Howdens Joinery, Fresenius, Matthew Clark and B&M Bargains. Road communications within the region will be further enhanced by the completion of the Mersey Gateway project, which comprises a new six-lane toll bridge over the River Mersey between Runcorn and Widnes, providing a fast link between the M56 and M62 motorways.
Simon Martindale, Fund Manager of PITCH, Mayfair Capital, said: "The transaction is in line with our strategy for PITCH of providing secure, long-term income growth and a relatively-high yield. The property is modern, well specified and let on a long-term lease with the additional benefit of minimum fixed increases. There remains a shortage of quality warehousing in the local market, which is putting upward pressure on rents and reducing void and rent-free periods".
PITCH was advised by JLL and Pin Properties was advised by B8.
Launched in January 2005, 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%.
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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 Capital Commercial Property Trust, MC Property Growth Fund No 2 and Mayfair Capital Residential 1.