Mayfair Capital Investment Management, the UK real estate investment manager, announces that Mayfair Capital Commercial Property Trust (MCCPT) has acquired three properties for more than €36.8 mln (£27 mln), taking the Fund’s total value to approx. €215 mln (£184 mln).
MCCPT, which was established in March 2014 as a Jersey property unit trust to provide unitholders from Jupiter Asset Management with UK commercial property exposure, has purchased Tower Retail Park in Poole for approx. €17.3 mln (£12.7 mln); a Travelodge in central Ipswich for approx. €7.4 mln (£5.4 mln) and a modern logistics facility near Barnsley for €12.7 (£9.3 mln).
Tower Retail Park was acquired from Anthonymaker, a joint venture company between BP Pension Fund and Cubemaker, a €136 mln (£100 mln) UK‐focused opportunistic property fund created by Cube Real Estate. It comprises four units, totalling approx. 7,200 m² (77,580 ft²), which are leased to Homebase, Topps Tiles, B&M, and McDonald’s at a low average passing rent of €169.47/m² (£11.57/ft²), with a weighted average unexpired lease term of 9.6 years. The investment provides the Fund with a net initial yield of 6.7%.
The Travelodge, which occupies a prominent position adjoining the city’s vibrant waterfront development, was completed in 2012 and is let for a further 22 years, subject to five-yearly, upwards-only rent reviews, linked to the Retail Prices Index (RPI). The property provides the Fund with a net initial yield of 5.95%, which is expected to increase to more than 6.5% in August 2017.
Situated at Elmhirst Park, close to junction 37 of the M1, in Barnsley, the logistics facility totals 14,700 m² (158,260 ft²) and is let to Galpharm International, a subsidiary of Perrigo Company, one of the world’s leading pharmaceutical manufacturers, for a further eight years at a rent of €54.78/m² (£3.74/ft²). The investment provides the Fund with a net initial yield of 6%, rising to 6.6% in July 2018 on the provision of a fixed rental uplift.
Montagu Evans, MacLaren and Partners, and Gent Visick respectively acted for MCCPT in the three transactions.
Designed to provide its investors with a net distribution yield of between 5% of 5.5% a year, together with both income and capital growth, MCCPT has now acquired 15 commercial properties with a combined purchase cost of approx. €215 mln (£184 mln), providing a blended portfolio yield of approximately 6.3% on cost.
Ned Pumphrey, a director of Mayfair Capital and fund director of MCCPT, said: “These three acquisitions are high-quality additions to the MCCPT portfolio. They provide a strong initial yield and offer the prospect of income and capital growth”.
Source: Mayfair Capital
