'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.