Mayfair Capital Investment Management’s Property Income Trust for Charities has acquired two properties in Kent and Stoke-on-Trent totalling £9.5m, as part of a strategy to capitalise on rental growth outside central London.

Fund director James Thornton explains: “These latest purchases reflect our cautious view on the prospects for rental growth outside central London and a small number of other select locations.  For charities, a relatively high income yield remains important at a time when all other asset classes are low yielding.  These leases also provide for growth in the income stream, another important factor for charity investors.”

The properties are a warehouse facility in Aylesford let to BT, together with a Go Outdoors retail unit in Hanley, Staffordshire. 

In Aylesford, Kent, the property is let to BT on a lease with 14 years unexpired at a rent of £400,000 per annum.  The lease contains provision for 3 per cent per annum minimum uplifts upon review every five years. 

Go Outdoors has taken a lease on the former Tesco supermarket in the centre of Hanley, on the outskirts of Stoke-on-Trent, for a term of 15 years at a rent of £275,000 per annum. The rental contract includes a provision for minimum increases on review, subject to a ‘cap and collar’ of 2 per cent and 3 per cent per annum.
 
The yield to the Mayfair's charity fund was 6.4% on the Aylesford warehouse and 8.25% on Go Outdoors in Hanley, giving a blended yield from the two acquisitions of 7.2%. 

Last year the fund bought a Debenhams store in Southport for £8.3m.