Mayfair Capital Investment Management’s second residential fund has raised additional equity the UK real estate manager said as it announced the financing of a re-development in Brighton.
Mayfair Capital Residential 2 (MCR2) has provided the undisclosed loan amount towards Ktesius’ ROX development in Brighton. GreenOak provided the senior finance for the project.
The redevelopment of the former Astoria Cinema in Brighton City Centre will comprise 70 flats including a gym, TV room, ground floor commercial units and cycle spaces.
Mayfair Capital, a member of Swiss Life Asset Managers, said the £32m (€36.7m) fund is expected to undertake a further three to five loans at similar sales value price points and locations during 2019.
Jos Seligman, fund manager of Mayfair Capital Residential 2, said: “Our investment in ROX, Brighton, where Ktesius are already onsite and have contracted pre-sales, helps fulfil the fund strategy to diversify the portfolio geographically, towards stock which will appeal to a variety of purchasers and by number and type of units.
“In this late stage of the residential market cycle, liquidity and house price growth is increasingly being concentrated on best in class lower value units near transport hubs. Over the course of 2019, we intend to continue to expand our loan book in similar value driven locations.”
MCR2 is a five-year closed-ended fund launched in September 2016 providing exposure to residential development mezzanine finance over multi-unit schemes.
In addition to ROX, the fund has invested in six projects in London Underground Zones 2 to 6.