Mayfair Capital Investment Management - part of Swiss Life Asset Management - has announced the launch of a new UK fund with co-investment from Swiss Life Group.
Mayfair Capital said that it has raised £100 mln (€112 mln) of equity for the MC Thematic Growth Fund, a closed-ended structure with a 5-7-year life targeting a return of 8-10% per annum with the use of up to 35% leverage.
The company plans to raise a further £150 mln of equity at a further close, giving a total fund size of around £400 mln with leverage.
The fund is targeting a stabilised income yield of 5% per annum once the fund is fully invested.
Swiss Life has provided an initial £80 mln of equity. Merseyside Pension Fund is also an investor in the fund which is being marketed to institutional and family office investors.
The fund has already contracted on two purchases with a total value of £40 mln.
Investment focus on demography, infrastructure, technology and e-commerce
James Thornton, chief executive of Mayfair Capital, said: 'We are a highly thematic investor and this fund will invest strictly in accordance with our key themes of demography, infrastructure, technology and e-commerce. The strategy focusses on acquiring assets that will appeal to the occupiers of tomorrow as well as today. We believe that some property benchmarks are becoming outmoded and are based on assets which are increasingly functionally as well as physically obsolete.'
Swiss Life Group Chief Investment Officer, Stefan Mächler, commented: 'As a significant insurance company we have a strong commitment to real estate in our asset allocation. The UK market is attractive to us on a relative pricing basis and we remain confident in prospects for the UK economy. Mayfair Capital have a proven track record and we are pleased to be making this investment in a fund with an interesting strategy.'
Insurer Swiss Life acquired control of Mayfair Capital in October 2016 and Mayfair is now one of its asset management companies alongside Swiss Life AM in Switzerland, Corpus Sireo and Swiss Life KVG in Germany and Swiss Life REIM in France.
