Mayfair Capital Investment Management's flagship fund, the Property Income Trust for Charities (PITCH), has completed £20.5 mln (€25 mln) of acquisitions.
Mayfair Capital Investment Management's flagship fund, the Property Income Trust for Charities (PITCH), has completed £20.5 mln (€25 mln) of acquisitions.
The fund has acquired a £15.9 mln office and restaurant building, located at 86 Deansgate, Manchester, from a private property company, reflecting a net initial yield of 6.2% to the fund.
The property comprises 47,804 sq ft (4,450 m2) of good-quality space, including newly-refurbished Grade A office accommodation over five upper floors, two restaurants on the ground floor and 31 basement parking spaces.
The building is fully occupied and has a wide range of tenants (15 in total) including the Mexican restaurant chain, Las Iguanas, Café Rouge, T-Mobile UK, a number of solicitors and property services firms including Cheetham & Mortimer and Riddell TPS and Reed, one of the largest recruitment agencies in the UK.
The property produces a total annual income of £994,715 per annum. King Street Commercial advised Mayfair Capital and CBRE advised the vendor.
PITCH has also acquired Interface House a 34,690 sq ft two-storey office building at Interface Business Park, Royal Wootton Bassett, Swindon, for £4.65 mln. The property was purchased from the occupier, Swindon Silicon Systems, a specialist in the design and supply of high-performance integrated circuits.
Swindon Silicon Systems has entered into a new 20-year lease agreement, with a break in year 16, paying an annual rent of £381,579. Peace Pennels advised Mayfair Capital and Mark Atkins Associates advised Swindon Silicon Systems.
'These two acquisitions offer a blended yield of 6.6% which will enable the fund to continue to deliver a relatively high income distribution to investors,' said James Thornton, chief investment officer of Mayfair Capital and fund director of PITCH..
Launched in January 2005, the fund attracted around £85 mln of new subscriptions in 2013, with a further £15.8 mln of new subscriptions made in Q1, 2014.
'PITCH continues to attract new investors for the charity sector on a monthly basis. With a number of acquisitions in hand we expect the fund to exceed £300 mln in size fairly shortly. Importantly, our investor activity is keeping pace with new equity inflows,' added Thornton.