Mayfair Capital Investment Management, the UK real estate investment manager, today announces that its flagship fund, the Property Income Trust for Charities (“PITCH”), has increased in size to £245 million, having completed a further £12 million of acquisitions.
PITCH has acquired three restaurant units on Greenwich Peninsula in south-east London for £5.7 million from Greenwich Peninsula Retail LLP, which is wholly-owned by Quintain. The units comprise 8,872 sq ft of space and are let to Costa Coffee, Café Rouge and Chiquito at a combined rent of £355,000 per annum. All are secured on long-term leases ranging from 10 to 25 years. The yield to the Fund is 6.2%.
The units are located at Peninsula Square, which is undergoing significant urban regeneration to create a major residential and commercial community. DTZ advised Mayfair Capital and Jones Lang LaSalle advised Quintain.
PITCH has also acquired a £6.3 million modern warehouse located at South Marston Distribution Park, Swindon, from Vantage, reflecting a yield to the Fund of 7%.The 89,596 sq ft warehouse is let to Cap Gemini UK Plc on a lease with 11.5 years unexpired at a passing rent of £403,200 per annum. Bushe Gower advised Mayfair Capital and Andrew Whitehouse Associates advised Vantage.
In addition to these acquisitions, PITCH has completed the sale of Bracken Trade Park in Bury, Greater Manchester, for £2.2 million to a local investor. This reflects a 20% return over the value and purchase at September 2013.
James Thornton, chief investment officer of Mayfair Capital and fund director of PITCH, said: “These acquisitions represent good value in the context of the market and offer further diversification within the portfolio, while enabling the Fund to continue to deliver an attractive yield of over 6.5%.
“The PITCH portfolio is positioned well to continue to deliver its investment objective and current letting activity in hand will reduce the void rate from 5% to less than 2.5%.
“The market is enjoying the benefit of a strengthening economy whilst property is back in favour with institutional investors as an alternative to gilt and fixed interest investments, which look vulnerable to interest rate rises.”
Launched in January 2005, PITCH has consistently outperformed the AREF/IPD UK All-Balanced Property Funds Index, producing a total return of 47% between 1 January 2005 and 31 December 2013. The Fund is the best-performing balanced fund over the last five years in the AREF/IPD Index of 28 Balanced funds, producing an 8.5% annualised return (versus 5.0%).
The Fund attracted around £85 million of new subscriptions in 2013, including the transfer of £24 million of assets of the Multi Strategy Property Trust for Charities (“MSPTC”). MSPTC was a common investment fund previously managed by Cazenove Capital.
The transaction was carried out by way of an ‘in specie’ transfer, which involved investors in MSPTC switching into PITCH.
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Notes to Editors
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 Guy Brogden (chief executive officer), James Thornton (chief investment officer), Robert Palmer (fund director) and James Lloyd (director of marketing). Mayfair Capital serves a diverse client base, including the Property Income Trust for Charities, the MC Property Unit Trust, the MC Income Plus Fund, the MC Property Growth Fund No 2 and the Mayfair Capital Residential 1.