Canada Life makes second loan to Mayfair Capital’s growing charities fund

Canada Life Investments has upped its total lending to the Property Income Trust for Charities (PITCH) fund to £50m.

The annuity lender has provided the fund, managed by Mayfair Capital Investment Management, with a new £24m, seven-year facility to refinance a 13-asset portfolio with a mixture of office, retail and industrial assets across the UK. The portfolio has a weighted average unexpired lease term of more than 10 years.

In August last year Canada Life provided a £26m, five-year facility against the same portfolio. Both the fixed rate, interest only facilities were drawn down at a loan-to-value ratio of around 50% reflecting the rise in the portfolio’s assets.

The weighted cost of funds across the portfolio now stands at 3.98%, while the loan-to-value is just over 20%.

PITCH, which was launched in 2005 and is chaired by former managing partner of Drivers Jonas Nick Shepherd, now owns around £290m of assets after passing the £200m mark last year.   The trust for charity investors has the advantage of being exempt from Stamp Duty Land Tax and has a target return of more than 6%.

Mayfair Capital’s chief executive James Thornton said the additional debt would help enhance the fund’s distribution yield. The overall fund LTV is just over 20%.

Nicholas Bent (pictured), head of real estate finance, Canada Life Investments said: “This new loan builds on our existing relationship with Mayfair Capital Investment Management and is also a demonstration of our commitment to providing flexible, medium-term loan facilities to institutional borrowers. While Canada Life Investments is traditionally seen to be a long-term lender, this latest loan is evidence that we also provide shorter-term facilities to high quality borrowers.”

Canada Life’smade its largest ever single loan  in June, £200m for a private investor secured against West End retail properties.