Brooks Macdonald Ground Rents Fund completes first London acquisition

By Bridging Loan Directory -

 

Following on from the it’s first ground rent acquisition of 2012 in February, Brooks Macdonald’s Channel Islands-listed Ground Rents Fund has purchased a further portfolio of ground rents, including the Fund’s first acquisition in London according to PropertyFundsWorld.

The portfolio consists of 833 residential units based in London, Birmingham and the North West, including Halcyon Wharf in London and the PostBox development in Birmingham, at a cost of GBP2.7m, with a total gross yield of 6.0% per annum.

Halcyon Wharf is located on the north bank of the River Thames, just a short walk from St Katharine’s Dock. The development, set over six floors, consists of 41 apartments comprising one, two and three bedroom apartments. A further 75 units have been purchased across London.

The PostBox development, situated around a landscaped communal garden, consists of 258 apartments. The one, two and three bedroom apartments are in a prime location next to the internationally-acclaimed Mailbox in the heart of Birmingham city.

The north west assets consist of a portfolio of 459 houses.

James Agar Development Director of Brooks Macdonald Funds says: “The addition of this portfolio maintains our investment requirements for long-term, forecastable, index-linked, secure income. The London-based assets have given the portfolio increased geographical coverage, whilst the greater underlying property values in the capital will lead to increased additional income streams. The Fund made its first dividend payment at the end of March and will do so six monthly going forward, illustrating the Directors’ commitment to distributing income to Shareholders.”

The Fund has a number of other acquisitions in the pipeline which are expected to complete over the next few months, all of which fulfil the Fund’s investment criteria of buying long-dated, index-linked Ground Rents in well located mixed-use and residential schemes.