Mayfair Capital’s Property Income Trust for Charities (PITCH) has acquired an urban supermarket property in North London for €14.3m (£12.7m), reflecting 3.54% net initial yield. The asset was sold by CBRE UK Property PAIF (UKPP), a fund managed by CBRE Global Investors. The purpose-built supermarket, which was constructed in 2000, is located in the affluent suburban area of Southgate, within the London Borough of Enfield. The property is let to M&S until 2045, which provides long-term attractive income – with the benefit of RPI rental uplifts every five years.
Phil Sturdy, Investment Director, commented: “Modern supermarkets play a key role in the evolving pattern of consumption in urban areas. While shoppers have a preference to shop locally, especially for convenience food-based goods, the ability of supermarkets to cater for click-and-collect and home delivery also means they can benefit from the ongoing rise of e-commerce. In addition, competition for land in this growing area of North London supports future long-term capital growth opportunities.”
Simon Martindale, Fund Manager of the Property Income Trust for Charities, added: “This acquisition provides attractive and secure long-term income to the Fund from a segment of the market which remains highly resilient to the current economic slowdown. This asset will complement the overall portfolio composition of the Fund following the recent warehouse purchases in Stoke-on-Trent and Stockport.”