Mayfair Capital Investment Management’s flagship fund, the Property Income Trust for Charities (PITCH), has completed GBP20.5 million of acquisitions.
PITCH has acquired a GBP15.9 million office and restaurant building, located at 86 Deansgate, Manchester, from a private property company, reflecting a net initial yield of 6.2 per cent to the Fund.
The property comprises 47,804 sq ft 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. 86 Deansgate is a short walk from both Mainline rail and Metrolink stations and adjacent to the prime office area of Spinningfields.
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 building provides PITCH with passing rents on the office space ranging from GBP15.00 per sq ft to GBP20.00 sq ft which is a significant discount to Manchester’s prime office area, Spinningfields. The property produces a total annual income of GBP994,715 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 GBP4.65 million.
The property has been 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 GBP381,579. Peace Pennels advised Mayfair Capital and Mark Atkins Associates advised Swindon Silicon Systems.
James Thornton, chief investment officer of Mayfair Capital and fund director of PITCH, says: “These two acquisitions offer a blended yield of 6.6 per cent which will enable the fund to continue to deliver a relatively high income distribution to investors. The assets offer differing benefits to the fund. Manchester offers the potential to drive returns through value added activities in what we regard as the strongest regional location away from the South East. In contrast, Wootton Basset offers a secure, inflation linked income with a relatively high yield and a long lease.
“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 GBP300 million in size fairly shortly. Importantly, our investor activity is keeping pace with new equity inflows.”