FINANCE: Mayfair Capital Investment Management has acquired a portfolio of show homes from Barratt Developments in a £3.3m deal.
The UK real estate investment manager bought the nine show homes ranging in price from £217,500 to £735,000, in Yorkshire, Lincolnshire and Sussex for its MC Property Growth Fund No 2.
The show homes, which have been built by Barratt Developments’ brands David Wilson Homes and Barratt Homes, have been leased back to the two brands for three years, with a break option at year two, at a rent that produces a net initial yield to the fund considerably higher than other asset classes at present.
MC Property Growth Fund No 2 aims to deliver a total return on equity invested of at least 10% a year, net of fees and expenses, by acquiring direct and indirect property and other property-related investments, which together will provide medium-term capital growth.
James Thornton, chief executive of Mayfair Capital and fund director, said: “This acquisition is innovative for a real estate investment manager. It provides us with an attractive yield with the prospect of strong capital growth, as the outlook for the UK residential market over the next few years remains positive.
“Barratt Developments is one of the UK’s top house builders and each show home is fitted out to the highest specification. We are confident for the resale prospects when the licence arrangement expires at the end of the development period.”
bridget.oconnell@estatesgazette.com
