Barwood Capital, the Northampton-based real estate investment and development business, has closed its 2017 Property Fund having secured £76 million and exceeded its target.
The Fund, which is a closed ended, five-year fund, will have £150 million with leverage and will exploit the arbitrage between undermanaged secondary commercial property stock and prime income producing investments in prime regional markets outside London.
Investors included high net worth individuals and family offices as well as material investments from Merseyside Pension Fund and British Airways Pension Investment Management.
The Fund will focus on lot sizes between £3 million and £20 million in urban logistics and distribution warehouses which are in demand due to the rise in internet retailing, and also selected regional offices in high growth and undersupplied locations in addition to an allocation to residential property, developing quality dwellings in attractive locations as housing demand continues to far outstrip supply.
The Fund will aim to deliver investor IRRs of 15% per annum net of all fees over the five-year period.
Joanna Greenslade, Managing Director, Barwood Capital said: “This is our fourth fund and we are delighted to have again attracted such significant investment from both existing and new investors. We are committed to delivering outstanding returns to our investors by providing them access to exciting UK regional property opportunities. In particular, we continue to see strong occupier demand for distribution warehousing due to the increase in online retailing and supply chain changes, and a buoyant market for well located, quality housing. We have already secured two excellent sites, which will be the subject of separate announcements shortly, and have a strong pipeline of further opportunities.”