Mayfair Capital Investment Management has announced that a trio of acquisitions totalling over £27 million has elevated the value of its Mayfair Capital Commercial Property Trust (MCCPT) portfolio to £184 million.
Tower Retail Park in Poole has been acquired from a joint venture company between BP Pension Fund and Cubemaker known as Anthonymaker for a total of £12.7 million. Comprising four retail units totalling 77,580 sq ft, the park is currently let to Homebase, B&M Bargains, Topps Tiles and McDonald’s.
Tower Retail Park’s sale price reflects a net initial yield of 6.70 per cent and will grant Mayfair Capital a low average passing rent of £11.57 per sq ft. The weighted unexpired lease term is 9.6 years, making the park a stable source of rental income for the medium term.
Mayfair Capital also acquired a Travelodge in central Ipswich for £5.4 million. The modern property was completed in 2012 and occupies a prominent position adjacent to the city’s vibrant waterfront development.
While the net initial yield is 5.95 per cent, this is expected to increase to more than 6.50 per cent in August 2017 as the remaining 22 years of the current lease are subject to five-yearly upwards only rent reviews linked to the Retail Prices Index (RPI).
Finally, Mayfair Capital has snapped up modern 152,260 sq ft logistics facility near Barnsley (pictured) for £9.3 million. Situated at Elmhirst Park by junction 37 of the M1, it is fully let to a subsidiary of leading multinational pharmaceutical manufacturer Perrigo Company known as Galpharm International, with eight years remaining on the lease.
However, the current rent of £3.74 per sq ft is set to rise in July 2018 due to the provision of a fixed rental uplift. As well as providing a boost to the site’s rental income, this will elevate the net initial yield of 6 per cent to 6.60 per cent.
Mayfair Capital director and fund director of MCCPT, Ned Pumphrey, believes that the latest acquisitions will fit well with the 12 properties already owned by the Fund.
He says; “These three acquisitions are high-quality additions to the MCCPT portfolio. They provide a strong initial yield and offer the prospect of income and capital growth.”
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