The Property Income Trust for Charities (PITCH), a market-leading fund for charities managed by Mayfair Capital, has acquired the long leasehold interest in Brookfield Care Home in Little Bury near Oxford for £8.23m.
The investment comprises a care home operated by MHA which is let until 2036 at an annual passing rent of £473,730 with fixed annual 2.5% rental uplifts. The acquisition reflects a market net initial yield of 5.4%.
Simon Martindale, Fund Manager of PITCH, commented: “MHA is the trading arm of the Methodist Homes for the Aged, a well-established, not-for-profit charity with 70 years’ experience in the care home sector and widely regarded as one of the strongest covenants in the market.
“This purchase is consistent with Mayfair Capital’s thematic investment approach, in particular its Demographics theme, which focuses on an ageing population and the growing demand for good quality, well-run care homes. The investment also enhances the weighted average unexpired lease term (WAULT) profile of the Fund.”
The property was constructed in 1999 and comprises a purpose-built facility with 66 ensuite bedrooms withhalf of the home’s accommodation devoted to dementia care.
PITCH was advised on the acquisition by JLL while the vendor, London and Oxford Estates, was represented by BNP Paribas Real Estate.PITCH is a unit trust designed as a pooled property vehicle available to all UK and EU Qualifying Charities. It was established to permit qualifying charities to co-invest in UK property in a manner that is tax-efficient for both income and capital. It also has the advantage of allowing properties to be acquired free of Stamp Duty Land Tax.