Brooks Macdonald buys Salford Quays ground rent
Publicly listed property investment manager Brooks Macdonald Funds has bought the ground rent of a 271-apartment block called XQ7 in Salford Quays out of administration, with a gross yield of 5.60% a year.
The vendor was KPMG, administrators to Lowry Properties. The price paid was £605,000.
James Agar, development director of Brooks Macdonald Funds, based in Manchester and Hale, said: "This acquisition takes the fund's ground rents portfolio towards the directors' target for 2012 of £20m, as interest in the fund from discretionary fund managers and institutional investors continues to be significant. The fund is completely ungeared with no bank debt of any kind, providing liquidity, real returns and paying income twice yearly.
"This transaction is a further reflection of the fund's position in the market as a professional investor and its close links with large scale corporate vendors. The fund's growth will add to the recently announced £3.455bn discretionary funds under management figure for the wider Brooks Macdonald Group as at 31 March 2012. The professional and commercial approach taken on this complex transaction by all parties is testament to the Fund's property management knowledge provided by Braemar Estates and the expertise of Brian Green and his team at KPMG."
Currently the ground rents in the portfolio provide a total gross yield of 6.45%.
Shares in Brooks Macdonald were unchanged at 1,365p. (LON:BRK )
