Mayfair Capital Investment Management’s flagship fund, the Property Income Trust for Charities (PITCH), has completed GBP22.6 million of acquisitions.
PITCH has acquired a GBP13.5 million retail and leisure investment in Widnes, Cheshire, from Property Alliance Group and a GBP9.1 million retail development in Skipton, Yorkshire, from Maple Grove Developments.
These acquisitions increase the size of PITCH to GBP290 million.
The property in Widnes, Cheshire, extends to 93,147 sq ft and comprises a modern B&Q retail warehouse, a Jellybean Play Centre unit and a trade counter park to the rear, which comprises six units in a terrace. The site is located south east of the town centre in close proximity to Widnes Shopping Park and Tesco Extra, Morrisons and Asda supermarkets and is easily reached via the M62 from the north at Junction 7 and the M56 to the south at Junction 12.
The building is fully let to eight tenants on full repairing and insuring terms at a total rent of GBP947,397 a year, which equates to a net initial yield of 6.91 per cent.
Deloitte Real Estate advised Mayfair Capital and Whitaker Horton advised Property Alliance Group.
The property at Albion Place in Skipton, Yorkshire, a retail development which was completed in 2014, comprises 46,500 sq ft and is adjacent to a Marks & Spencer Simply Food outlet and close to New Look, Arcadia, Boots, O2 and Costa stores. The eight units offer large floorplates and are let to retailers, including Next, Cotswold Outdoor, Cotton Traders and Pizza Express, at a total rent of GBP602,500 a year, which equates to a net initial yield of 6.50 per cent.
GVA advised Maple Grove Developments.
James Thornton, CEO of Mayfair Capital and fund director of PITCH, says: “These two acquisitions offer a blended yield of 6.7 per cent, which will enable the Fund to continue to deliver a relatively high income distribution to investors. Widnes is well located, well let and offers a good income return. Skipton is an attractive development in a town that is affluent and has a tight supply.
“PITCH continues to attract new investors from the charity sector on a monthly basis. With a number of acquisitions in hand we expect the Fund to exceed GBP300 million in size very shortly”
Ben Hall, investment director at GVA in Leeds, says: “Albion Place has given an economic boost to Skipton and the surrounding area. We had strong interest in the property which again shows a return of investor sentiment to the region.
“The Yorkshire investment team at GVA continues to be extremely busy and this reflects the growing confidence within the market.”
The fund attracted around GBP85 million of new subscriptions in 2013, with a further GBP32.6 million of new subscriptions made in the first half of 2014.