Articles

The Property Income Trust for Charities (PITCH), managed by Mayfair Capital Investment Management, has acquired T1, a well-connected and thematically aligned office asset in Solihull.

The property is a modern, high-specification office situated on Trinity Park, a sought-after commercial park in the West Midlands. Trinity Park is strategically located at the apex of the M42 motorway and the A45 road that links Birmingham with Coventry. The site is adjacent to Birmingham International railway station and Birmingham Airport, while the new HS2 Interchange station, Arden Cross, will be situated under a mile from the office once complete. The Park will benefit from a direct shuttle link to the station, providing a 38-minute journey time to London.

PITCH’s thematic approach, which seeks to ensure its buildings are aligned with occupational demand, both now and in the future, grades each asset according to five core themes: change and disruption, climate and environment, communities and clustering, consumers and lifestyle, and connectivity. T1 scores highly across each of these core themes, given its adaptability to evolving occupier demands, enviable location and digital connectivity.

T1, Mayfair Capital’s fourth Trinity Park asset, sits adjacent to T2, another PITCH holding, which was successfully let in September 2021 to leading facilities management company Mitie for ten years. Mayfair Capital represents clients in respect of two other assets on Trinity Park, which each score highly against its core investment themes.

T1 will be refurbished with the aim of achieving operational net zero and delivering strong valuation growth. The asset is currently significantly under rented and is multi-let on an average of £19 per square foot, well below the recent letting on T2. The property will provide PITCH with an initial income return of 6.85% per annum, with a net reversionary yield on cost of 7.75% per year.

The acquisition follows a highly successful 12 months for PITCH in terms of both returns and new investments. The PITCH portfolio delivered an annual return of 22.9% in 2021 – the fifth best performing fund in the MSCI/AREF UK All Balanced Property Fund Index. The final quarter of 2021 saw the Fund acquire £50m of new assets across three different sectors. PITCH also sold 11 properties last year, delivering a capital gain over the pre-marketed valuation of circa £10m.

Phil Sturdy, investment director of Mayfair Capital, says: “While the past couple of years have been challenging for the UK office sector, there remains a fundamental need for high-quality office space across the country as companies increasingly realise their critical role in promoting innovation, collaboration and productivity. 

This acquisition marks a further testament to our belief in the future growth of the office for those ‘best-in-class’ buildings and locations.

Simon Martindale, fund director of PITCH commented: “Trinity Park is one of our top thematic office picks in the UK offering unrivalled transport communications in a location that continues to see robust occupational demand. We are confident the T1 property will deliver resilient income and attractive capital growth to the Fund over the long term, driven by our expertise in refurbishing assets according to the evolving preferences of the modern-day workforce.”

Mayfair Capital was advised by BNP Paribas whilst the vendor was represented by CBRE.