Mayfair Capital Residential 2 raises new equity
Mayfair Capital Residential 2 (MCR2) has raised additional equity and undertaken Mayfair Capital’s first deal outside London, with a loan for Ktesius’ ROX development in Brighton.
The GBP32 million fund is expected to undertake a further three to five loans at similar sales value price points and locations during 2019.
MCR2 is a five year closed-ended fund launched in September 2016 providing exposure to residential development mezzanine finance over multi-unit schemes providing relative value in well-connected locations. In addition to ROX the fund has invested in six projects in London Underground Zones 2-6 and follows on from the success of Mayfair Capital Residential 1 which ended in 2018 having returned 16.4 per cent per annum to investors.
The re-development of the former Astoria Cinema in Brighton City Centre will comprise 70 high quality lifestyle orientated flats including a gym, TV room, ground floor commercial units and cycle spaces. GreenOak provided the senior finance for the project. The local area is improving with Brighton Council undertaking GBP10 million of public realm improvements in the immediate location.
Jos Seligman, Fund Manager of Mayfair Capital Residential 2, says: “Our investment in ROX, Brighton, where Ktesius are already onsite and have contracted pre-sales, helps fulfil the fund strategy to diversify the portfolio geographically, towards stock which will appeal to a variety of purchasers and by number and type of units. In this late stage of the residential market cycle liquidity and house price growth is increasingly being concentrated on best in class lower value units near transport hubs. Over the course of 2019 we intend to continue to expand our loan book in similar value driven locations.”