Mayfair Capital Investment Management, the UK real estate investment manager, announces that its flagship fund, The Property Income Trust for Charities (“PITCH”), has increased its investment portfolio to £427 million after completing three acquisitions, totalling £16 million.
In the largest transaction, PITCH has purchased a Travelodge hotel at 14-18 Queens Road in Norwich for £8.7 million from Aviva Investors Pensions Ltd representing a yield to PITCH of 5.5% rising to an expected 6.2% in November. The lease to Travelodge Hotels Ltd runs until November 2039, with part of the ground floor let to Bathstore.com. The passing rent amounts to £485,460 a year, with an RPI-linked increase due in November 2015. Steadman Brierley and Savills acted on behalf of PITCH and JLL for Aviva.
In the second transaction, PITCH has acquired a modern office building in Milton Keynes from an Oxbridge College for £4.0 million, which was satisfied through the issue of new units in PITCH, representing a yield to PITCH of 8.0%. The asset is located at Eastlake Park and is let to Omron Electronics Ltd until March 2020 at a rent of £325,000 a year, equating to £16.24/sq ft. Bidwells acted for the vendor.
The third transaction is a £3.3 million industrial building, acquired from a national charity, at Southmoor Lane in Havant, Hampshire. The purchase price, which was satisfied partly in cash and partly through the issue of new units in PITCH, represents a yield to PITCH of 7.0%. The investment is let to Lewmar Ltd until June 2030 at a rent of £230,000 a year, equating to £6.44/sq ft. Molyneux Rose acted for the Vendor.
James Thornton, Chief Executive of Mayfair Capital and Fund Director of PITCH, said: “PITCH is continuing to see positive inflows of money in response to its outperformance and attractive yield. The fact that the vendors of the Milton Keynes and Havant properties wanted to receive units in PITCH as consideration reflects their continuing commitment to real estate as an asset class whilst diversifying their exposure into a fund holding over 60 assets. These latest acquisitions are in line with our investment strategy for PITCH, providing secure and long-term income growth.”
Launched in January 2005, PITCH has outperformed the AREF/IPD UK All-Balanced Property Funds Index (ABPFI) over 3, 5 and 10 years to 30 June 2015. It has produced a total return of 86.2% between 1 January 2005 and 30 June 2015. With a yield for the rolling 12 months of 6.4%, the Fund continues to attract new equity from charities - with £87 million of new subscriptions in the 12 months to the end of 30 June 2015. Mayfair Capital has been shortlisted for the second year running for ‘Boutique Investment Manager’ at the Charity Times Awards 2015, having won the award last year, and it has also been shortlisted for ‘Fund Manager of the Year’ at the Estates Gazette Awards 2015.
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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.