Mayfair Capital Investment Management has announced that its flagship fund, The Property Income Trust for Charities ("PITCH"), has increased its investment portfolio to €640m (£460m) after completing two acquisitions totalling €39.9m (£28.7m), while returns continue to exceed the fund’s total return objective.
In the largest transaction, PITCH acquired a large distribution warehouse on Papyrus Road in Peterborough from Malvern Enterprises for €21.9m (£15.7m), representing a yield of 5.7%. The asset is let to Royal Mail Group Ltd until June 2031 at an annual rent of €1.25m (£902,000), equating to €65.23/m² (£4.35/ft²).
In a separate transaction, PITCH bought a multi-let industrial investment from Salmon Harvester for €18.1m (£13m). The investment is located in Hook, Hampshire, and comprises eight modern industrial units, let to six different tenants at a total yearly rent of €1.15m (£824,255), equating to an average of €136/m² (£9.07/ft²).
Simon Martindale, Fund Manager of PITCH, said: "The logistics sector remains one of our favoured market segments. Both of these acquisitions are in line with our investment strategy for PITCH, providing secure, long-term income growth and an attractive yield.”
Launched in January 2005, PITCH has outperformed the AREF/IPD UK All-Balanced Property Funds Index (ABPFI) over six months, 12 months, three, five and 10 years to 30 September 2015. It returned 3% in Q3 2015 and 16.5% in the 12 months to 30 September. With a yield for the rolling 12 months of 6%, the Fund continues to attract new equity from charities - raising €105m (£75m) of new subscriptions in the 12 months to the end of 30 September 2015.