Ground rents sold at Masshouse scheme

BROOKS Macdonald Funds has bought the ground rents of The Hive – the residential element of developer Nikal’s £600m Masshouse scheme in Birmingham.

Brooks Macdonald said the purchase, for an undisclosed sum, includes ground rents for 167 residential apartments and commercial space.

The purchase was made by its Channel Islands-listed Ground Rents Fund from Masshouse Developments, which is a joint venture between Nikal and an equity arm of Royal Bank of Scotland.

The deal follows on from the purchase of ground rents at the first phase of the Masshouse project in October 2009.

James Agar, development director for Brooks Macdonald Funds and Braemar Estates, said: “This asset provides the fund with a further high quality development which fits its acquisition profile.

“Hive has a ten year, RPI-linked cycle offering investors in the fund a hedge against inflation, which is a key investment criteria given the current market conditions.”

The asset will be managed by Braemar Estates.