A UK property fund set up by Mayfair Capital Investment Management has bought an office asset from M&G Real Estate for £16.9m (€18.8m).
Mayfair Capital Thematic Growth Fund has completed a second close and acquired AB InBev House in Church Street in Woking. The 65,577sqft building is let to AB InBev until March 2019.
Phil Sturdy of Mayfair Capital, said: “Our plan is to refurbish the building to provide flexible, amenity-rich accommodation that meets the needs of today’s occupiers. The building is in an excellent location directly opposite the site of the Victoria Square development which will create new retail, leisure and residential space.
“The demographics, infrastructure and occupier demand for the location and the characteristics of this building are aligned with our thematic approach to investment.”
Mayfair Capital’s CIO, Robert Palmer, said: “Occupier dynamics are changing very rapidly and so are the requirements of successful real estate investing.
“Guided by the themes which are having the most transformational impact, the Thematic Growth Fund capitalises on these changes to invest in properties which can be aligned to future occupational demand in locations where the occupiers of tomorrow want to be.”
Palmer said following a second close the fund now has £95m of equity commitments including a significant sponsor’s commitment and has completed £75m of acquisitions.
“We plan to raise a further £150m for a final close in 2019, and will add leverage of up to 35% at that time,” Palmer said.
Mayfair Capital Thematic Growth Fund was launched earlier this year with co-investment of up to £80m from its parent company Swiss Life Group.
The fund has a closed-ended structure with a 5 to 7-year life targeting a return of 8% to 10% per annum. The stabilised income yield is targeted to be 5% per annum once the fund is fully invested.
