Mayfair Capital Investment Management’s charities fund has completed a series of acquisitions to push it to the £245m mark.
The Property Income Trust for Charities was the purchaser of three restaurant units on Greenwich Peninsula in south-east London from Quintain.
It paid £5.7m to Greenwich Peninsula Retail, which is wholly owned by Quintain, for the 8,900 sq ft units let to Costa Coffee, Café Rouge and Chiquito at a combined rent of £355,000 per annum.
All are secured on long-term leases ranging from 10 to 25 years. The yield to PITCH is 6.2%.
DTZ advised Mayfair Capital and Jones Lang LaSalle advised Quintain.
PITCH has also acquired a £6.3m modern warehouse located at South Marston Distribution Park, Swindon, from Vantage, reflecting a 7% yield.
The 89,596 sq ft warehouse is let to Cap Gemini UK Plc on a lease with 11.5 years unexpired at a passing rent of £403,200 per annum. Bushe Gower advised Mayfair Capital and Andrew Whitehouse Associates advised Vantage.
The £12m of acquisitions have increased the size of the fund to £245m.
In addition to these acquisitions, PITCH has completed the sale of Bracken Trade Park in Bury, Greater Manchester, for £2.2m to a local investor. This reflects a 20% return over the value and purchase at September 2013.
James Thornton, chief investment officer of Mayfair Capital and fund director of PITCH, said: “These acquisitions represent good value in the context of the market and offer further diversification within the portfolio, while enabling the Fund to continue to deliver an attractive yield of over 6.5%.
“The PITCH portfolio is positioned well to continue to deliver its investment objective and current letting activity in hand will reduce the void rate from 5% to less than 2.5%.
The market is enjoying the benefit of a strengthening economy whilst property is back in favour with institutional investors as an alternative to gilt and fixed interest investments, which look vulnerable to interest rate rises.”
Launched in January 2005, PITCH has consistently outperformed the AREF/IPD UK All- Balanced Property Funds Index, producing a total return of 47% between 1 January 2005 and 31 December 2013. The Fund is the best-performing balanced fund over the last five years in the AREF/IPD Index of 28 Balanced funds, producing an 8.5% annualised return (versus 5.0%).
Bridget.O’Connell@estatesgazette.com
