Braemar fund buys One Park West ground rents

Ground Rents Income Fund, a listed real estate investment trust managed by Hale-based Braemar Estates, has paid £2.7m to buy the ground rents of One Park West in Liverpool ONE from Grosvenor Developments.

GRIF is now 50% invested following its initial public offering which raised £50m in August 2012. Braemar said this was ahead of schedule and another £50m would be raised in 2013.

The fund will make its maiden interim dividend of 0.35p a share on 25 January.

The Liverpool purchase includes ground rents of all 326 apartments in One Park West, at 17 storeys the tallest building Liverpool ONE.

In London, GRIF has acquired the ground rents of 155 flats in Clapham One from Cathedral Group for approximately £1m.

Malcolm Naish, chairman of GRIF, said: "It is good to be able to report that the Fund is on course to meet the objectives set at launch, notwithstanding the continued challenges of the economic environment. The recent purchases are attractive additions to an already strong and diversified portfolio. We were also pleased to announce GRIF will be paying its first dividend in January."

James Agar, investment director of Braemar Estates, said: "The company has been successful in acquiring assets which fit the profile of providing investors with long-term, secure income with a quasi-inflation hedging. We are particularly pleased to have completed the One Park West and Clapham One deals with Grosvenor and Cathedral Group respectively, both of these assets are large scale, flagship schemes which highlight our ability to source deals within a tightly held and relationship driven space.

"We have also identified an excellent pipeline of opportunities for completion in the first quarter of 2013, which we anticipate will see GRIF outperforming the 12 month investment timescale that was set at launch."