Mayfair's PITCH buys UK assets in exchange for fund units

UK asset manager Mayfair Capital IM said on Friday that its PITCH fund has increased its investment portfolio to £370 mln (€520 mln) with the acquisition of £20 mln of commercial properties.

The vendor, the National Trust for Scotland, sold the assets in exchange for units in PITCH (Property Income Trust for Charities).

'The transaction enabled the National Trust for Scotland to dilute its investment holdings in direct property while maintaining an exposure to the property market through investing in a more diverse portfolio,' the company said in a statement.

The portfolio comprises 11 commercial assets in established locations, including Aberdeen, Leeds, Yeovil and Trafford Park in Manchester. Tenants include B&Q, Screwfix, Cummins and Jewson. The average lease length is 7.25 years. The properties will provide a yield to PITCH of 8.2%.

The deal is Mayfair's second to be paid with fund units. In November 2013 the Multi Strategy Property Trust for Charities, a common investment fund previously managed by Cazenove Capital, transferred into PITCH through the sale of eight direct assets with a value of around £23 mln and a unit holding in the Unite Student Accommodation Fund.

James Thornton, chief executive of Mayfair Capital and fund director of PITCH, said: 'We are increasingly seeing potential "in specie" transfers as an option being considered by charities as they look at moving from a direct to indirect property exposure.'

He added: 'We can see the attraction for charities to consider this move with PITCH providing good diversification, as opposed to concentrated risk in one or two direct assets, a strong yield from day one, as well as removing the burden of direct property management.'

Launched in January 2005, PITCH attracted around £60 mln of new subscriptions in the 12 months to the end of December 2014.