Mayfair Capital Investment Management’s flagship fund, the Property Income Trust for Charities (PITCH), has completed the largest industrial letting in the North West in 2014.
PITCH has let its 115,000 manufacturing warehouse, Tame115, at Tameside Industrial Park, Dukinfield, Manchester, to Ritrama UK, a manufacturer of self-adhesive materials, which is relocating from its existing 72,000 sq ft facility at Lyntown Trading Estate in Eccles, Salford.
The lease was granted on full repairing and insuring terms for 16 years at a starting rent of GBP425,000.
James Thornton (pictured), chief investment officer of Mayfair Capital and fund director of PITCH, says: “This significant letting for PITCH more than halves the void rate in its portfolio to just 2.1 per cent of the income. This is important to our charity investors because it increases the distribution yield. The fund now offers a prospective yield of 6.5 per cent plus, which is very attractive to charities in the current environment of low inflation and interest rates.”
Launched in January 2005, PITCH has outperformed the AREF/IPD UK All- Balanced Property Funds Index, producing a total return of 51.5 per cent between 1 January 2005 and 31 March 2014. The fund is the equal best-performing balanced fund over the last five years in the AREF/IPD Index of 28 Balanced funds, producing an 10.8 per cent annualised return (versus 7.5 per cent).
The fund attracted around GBP85 million of new subscriptions in 2013, with a further GBP15.8 million of new subscriptions made in the first quarter of 2014.
For the Dukinfield transaction JLL acted for Mayfair Capital and Ridley Thaw for Ritrama.
Richard Johnson, associate director at JLL Manchester, says: “Tame115 was one of the few, large purpose-built manufacturing units left in the region and, therefore, we were always confident of disposing of it to a manufacturer. Tame115 suits Ritrama because it offers the company a corporate-looking, fully-fitted manufacturing facility with a large power supply and is within easy reach of the M60.
“With UK manufacturing continuing to perform strongly, bolstered by growing trends such as re-shoring, we expect the sector to drive the North West industrial market this year, along with e-commerce."