Mayfair Capital adds two UK offices to Charity fund portfolio

The Property Income Trust for Charities (PITCH), managed by Mayfair Capital Investment Management, has acquired two offices in the south east of England for £34 mln (€38 mln) in an off-market deal with Boultbee Brooks Real Estate (BBRE).

'In a market starved of quality income-producing stock, we are delighted to have secured these two off-market office investments for PITCH. Both properties provide secure long-term income in locations that we believe are set for above-average rental growth,' said fund manager Simon Martindale.

36 Clarendon Road, Watford is a new build Grade A office with a BREEAM rating of 'very good' completed in June 2018. It is let to Salmon, a subsidiary of WPP, for 15 years with a tenant break option in the 10th year at a passing rent of £31.50 per ft2.

The property comprises 28,000 ft2 of office accommodation and is the first new office development in Watford for over 15 years. The £14.5 mln purchase price reflects a net initial yield of 5.5%.

Location set to be transformed by Crossrail
In Brentwood, PITCH has bought Stone Cross, a 39,000 ft2 purpose-built office investment in a location that is set to be transformed by Crossrail, which opens in 2019. The property has been let to Sky CP at a passing rent of £28.25 per ft2, for a term of 15 years, subject to a tenant break option in the 10th year.

The property is currently subject to a £6 mln refurbishment. According to Mayfair Capital, like Watford, Brentwood has seen a significant erosion of office accommodation to residential and has a current vacancy rate of 1.4%. The purchase price of £19.3m reflects a net initial yield of 5.35%.

'We are delighted to have concluded these transactions with Mayfair Capital. This continues our core strategy of creating institutional grade investments by developing and re-positioning buildings in locations underpinned by compelling demand/supply stats and wider infrastructure investment. We will actively look to re-deploy funds into similar opportunities over the coming months,' concluded Clive Boultbee Brooks of BBRE.

Hanover Green (Watford) and Cushman & Wakefield (Brentwood) acted for PITCH whilst Aurum Real Estate acted for BBRE.


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