Mayfair Capital Investment Management, the UK real estate investment manager, today announces that its MC Property Growth Fund No. 2 has acquired a portfolio of show homes from Barratt Developments.
MC Property Growth Fund No. 2 has purchased nine show homes, ranging in price from £217,500 (approx. €271,600) to £735,000 (approx. €917,870), in Yorkshire, Lincolnshire and Sussex for a total of £3.3 million (approx. €4.1 million). The show homes, which have been built by Barratt Developments’ brands, David Wilson Homes and Barratt Homes, have been leased back to the two brands for three years, with a break option at year two, at a rent that produces a net initial yield to the Fund considerably higher than other asset classes at present.
MC Property Growth Fund No. 2 aims to deliver a total return on equity invested of at least 10% a year, net of fees and expenses, by acquiring direct and indirect property and other property-related investments, which together will provide medium-term capital growth.
James Thornton, CEO of Mayfair Capital and Fund Director of MC Property Growth Fund No.2, commented: “This acquisition is innovative for a real estate investment manager. It provides us with an attractive yield with the prospect of strong capital growth, as the outlook for the UK residential market over the next few years remains positive.
“Barratt Developments is one of the UK’s top house builders and each show home is fitted out to the highest specification. We are confident for the re sale prospects when the licence arrangement expires at the end of the development period.”
Source: Mayfair Capital