Mayfair Capital launches €452.3m UK real estate fund

Mayfair Capital launches €452.3m UK Thematic Growth Fund

Mayfair Capital Investment Management has launched a new UK Fund with co-investment from Swiss Life Group. The MC Thematic Growth Fund is a closed-ended structure with a 5-7-year life targeting a return of 8-10% per annum with the use of up to 35% leverage. The stabilised income yield is targeted to be 5% per annum once the fund is fully invested.


With c. €113m (£100m) of equity committed, the fund has already contracted on two purchases with a total value of €45.2m (£40m). Merseyside Pension Fund is also an investor in the fund which is being marketed to institutional and family office investors.


The intention for the fund is to raise a further €169.6m (£150m) of equity at a further close, giving a total fund size of around €452.3m (£400m) with leverage.


Co-investment of up to €90.4m (£80m) from Swiss Life to the Thematic Fund further endorses the attraction of UK property to overseas investors. The investment has been subscribed by the Swiss, French and German insurance companies.


James Thornton, Chief Executive of Mayfair Capital, said: “We are a highly thematic investor and this fund will invest strictly in accordance with our key themes of demography, infrastructure, technology and e-commerce. The strategy focusses on acquiring assets that will appeal to the occupiers of tomorrow as well as today. We believe that some property benchmarks are becoming outmoded and are based on assets which are increasingly functionally as well as physically obsolete. Given the rapidly changing occupier dynamic, investors need to be ahead of the curve and provide the environment and amenities demanded by occupiers. Our track record during the past 3-5 years demonstrates our conviction-led, thematic approach delivers superior, risk-adjusted returns.”


Swiss Life Group Chief Investment Officer, Stefan Mächler, commented: “As a significant insurance company we have a strong commitment to real estate in our asset allocation. The UK market is attractive to us on a relative pricing basis and we remain confident in prospects for the UK economy. Mayfair Capital has a proven track record and we are pleased to be making this investment in a fund with an interesting strategy”.

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