Second major Wootton Bassett property deal reflects strengthening market

April 23, 2014
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Integrated circuit design firm Swindon Silicon Systems has sold its head office to a London-based investment fund for £4.65m – the latest in a series of commercial property deals around the town and another indication of rapid recovery in the market.

The deal transfers ownership of the 34,690 sq ft, two-storey Interface House office building to Mayfair Capital Investment Management’s Property Income Trust for Charities (PITCH) fund. It is also the second at Royal Wootton Bassett’s Interface Business Park in less than a month.

Specialist business removals firm Bishopsgate bought the freehold of its head office and warehouse at Interface for £2.5m. The 54,288 sq ft unit was previously owned by Leicester-based property fund managers Custodian.

In its deal, Swindon Silicon Systems has entered into a 20-year lease agreement, with Mayfair Capital. The firm will pay an annual rent of £381,579 and there will be a break in year 16.

PITCH, Mayfair Capital’s flagship fund, also acquired a £15.9m office and restaurant building in central Manchester.

James Thornton, chief investment officer of Mayfair Capital and fund director of PITCH, said the two acquisitions enabled the fund to continue to deliver a relatively high income distribution to investors.

“Manchester offers the potential to drive returns through value-added activities in what we regard as the strongest regional location away from the South East. In contrast, Wootton Basset offers a secure, inflation-linked income with a relatively high yield and a long lease.

“PITCH continues to attract new investors for the charity sector on a monthly basis. With a number of acquisitions in hand we expect the fund to exceed £300m in size fairly shortly. Importantly, our investor activity is keeping pace with new equity inflows.”

The Fund, launched in 2005, attracted around £85m of new subscriptions in 2013, with a further £15.8m of new subscriptions made in the first quarter of this year.

Peace Pennels advised Mayfair Capital and Mark Atkins Associates advised Swindon Silicon Systems in the Interface transaction.

 

 

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