Mayfair Capital targets institutional investors by re-launching MC Income Plus Fund
By Bridging Loan Directory -
Property Funds World has reported that commercial property fund manager, Mayfair Capital Investment Management has re-launched its MC Income Plus Fund as an open-ended exempt property unit trust for UK pension investors.
The Fund was previously a closed-ended UK limited partnership with a unit trust feeder fund. The restructuring now allows for greater liquidity, with quarterly entry and redemption points.
More than 90% of the original Fund’s investor base has remained invested through the restructuring. The restructuring was made possible as a consequence of no Stamp Duty being payable on the transfer of assets between the old limited partnership and the new unit trust.
The GBP38 million Fund invests in a diversified group of UK properties and focuses on quality and longevity of income. Almost half (44%) of the properties benefit from fixed or minimum uplifts at rent review and the weighted unexpired term is around ten and a half years. The Fund has a target distribution yield in the range of 5-6% per annum, but is currently yielding 6.9% to new investors. With the restructuring, the Fund has moved from an absolute return objective to one based on outperformance against the AREF/ IPD UK Pooled – All Balanced Property Funds Index. As an open ended unit trust, it will build on the success of Mayfair Capital’s flagship fund, the Property Income Trust for Charities.
The re-launch will target institutional investors, corporate and local authority pension funds and pension funds run by charities as well as SIPPs and SASS.
Guy Brogden, the Fund Manager, said:
“The MC Income Plus Fund enables pension funds to buy into an existing, well established commercial property portfolio whilst benefiting from a relatively high income yield at a time when much of the competition is yielding between 4% and 5% per annum. The focus on quality and longevity of income is particularly attractive to those investors seeking a secure income for their property investment allocation.”