Mayfair Capital Investment Management, the UK real estate investment manager, announces that its flagship fund, The Property Income Trust for Charities (“PITCH”), has increased its investment portfolio to around £370 mln with the acquisition of £20 mln of commercial investment properties from the National Trust for Scotland.
The acquisition was carried out by way of an ‘in specie’ transfer, which involved the National Trust for Scotland selling the assets in exchange for units in PITCH. The transaction enabled the National Trust for Scotland to substantially dilute its investment holdings in direct property while maintaining an exposure to the property market through investing in a more diverse portfolio, without incurring substantial transaction costs.
The portfolio comprises 11 commercial assets in established locations, including Aberdeen, Leeds, Yeovil and Trafford Park in Manchester. Tenants include well-known companies, such as B&Q, Screwfix, Cummins and Jewson. The average lease length is 7.25 years. The properties will provide a yield to PITCH of 8.2%.
The National Trust for Scotland portfolio purchase is the second ‘in specie’ transaction carried out by Mayfair Capital. In November 2013 the Multi Strategy Property Trust for Charities, a common investment fund previously managed by Cazenove Capital, transferred into PITCH through the sale of eight direct assets with a value of around £23 mln and a unit holding in the Unite Student Accommodation Fund.
James Thornton, Chief executive of Mayfair Capital and fund director of PITCH, said: “We are pleased to have completed our second ‘in specie’ transfer of property assets into PITCH in the last 18 months. The National Trust for Scotland’s properties are well located and provide a strong yield to PITCH.”
“We are increasingly seeing potential ‘in specie’ transfers as an option being considered by charities as they look at moving from a direct to indirect property exposure."
Source: Mayfair Capital Investment Management