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 £404 mln (approx. €573.4 mln) after completing three acquisitions, totalling £31.4 mln (approx. €44.6 mln).
In the largest transaction, PITCH has acquired Border Retail Park in Wrexham, North Wales, from Aviva Investors for £12.6 mln (approx. €17.9 mln), representing a yield to PITCH of 7.85% (a 7.53% net initial yield assuming standard purchaser’s costs). The retail park is let to five tenants at a combined rent of £1 mln (approx. €1.4 mln) a year, with a weighted unexpired lease term of 10.2 years. The tenants include Wickes, Pets at Home, Next, Poundstretcher, and Burger King.
Border Retail Park is a modern, purpose-built scheme of four terraced units and a standalone drive-through unit, totalling 63,811 ft² (approx. 5,835 m²), on a 5.85 acre site. It benefits from an open A1 (non-food) planning consent. DTZ advised PITCH on this transaction and Morgan Williams advised the vendor.
PITCH has also acquired the Fellowes Unit, West Moor Park, a prime distribution facility in Doncaster, Yorkshire, for £11.3 mln (approx. €16 mln), representing a yield to PITCH of 5.89%. The property, bought from Perland Properties, is let in its entirety to Fellowes Ltd until January 2017 at a rent of £675,000 (approx. €958,000) a year, equating to £3.55/ft² (approx. €54.26/m². The unit is highly reversionary.
The property is a high-quality, purpose-built distribution facility with ancillary office space on a site of 9.3 acres. Doncaster is a strong distribution location, owing to its proximity to the A1/M18 interchange and several major ports. The presence of DHL, Tesco, Amazon, Wincanton, and several Next warehouses underpin the town as a distribution location. Knight Frank advised PITCH on this transaction.
In a third transaction, PITCH purchased additional units in the Unite UK Student Accommodation Fund (USAF) as part of the recent equity raise.
PITCH also completed the sale of a mixed-use building in Twickenham, south west London, for £5.175 mln (approx. €7.342 mln. The property comprises a modern four-storey building, providing office space on three floors, seven one-bed flats on the third (top) floor and two retail units on the ground floor. The sale generated competitive bidding and comfortably exceeded valuation.
Launched in January 2005, PITCH has outperformed the AREF/IPD UK All-Balanced Property Funds Index (ABPFI) over three, five, and 10 years to 30th June 2015. It has produced a total return of 86.2% between 1st January 2005 and 30th June 2015. With a yield for the rolling 12 months of 6.4%, the Fund continues to attract new equity from charities. PITCH attracted around £87 mln (approx. €123.5 mln) of new subscriptions in the 12 months to the end of 30 June 2015. Mayfair Capital has been shortlisted for the second year running for ‘Boutique Investment Manager’ at the Charity Times Awards 2015; having won the Award category last year.
Source: Mayfair Capital
