Barwood Capital, the Northampton-based UK regional real estate investment and development specialist, has closed its Regional Property Growth Fund IV and raised a combined £110 million of equity both directly and through co-investment, £10 million above its target.
Barwood Capital launched its fifth property fund in spring 2019. It is closed ended focused on UK regional property outside London driven by significant ongoing changes in technology, infrastructure and demographics in the industrial and alternatives sectors, as well as other selected real estate opportunities.
With a target investor IRR of 13-15% per annum, investors have included institutions, family offices, charities and high net worth investors. Over 80% were repeat investors from previous Barwood Capital funds, together with a number of new investors.
The total forecasted AUM, including co-investment, is over £205 million.
The Fund has already invested in seven projects across the UK regions where there is good occupational and operator demand, a need for investment and the potential for strong rental growth prospects.
These projects have included: a 4.2-acre industrial development site in Sittingbourne in Thames Gateway, an 11.25-acre industrial development site at Bardon in Leicestershire, the former B&Q retail warehouse in Sheffield with development partner Tungsten Properties, a Guildford care home redevelopment opportunity with Perseus Land & Developments and, most recently, the 440,000 sq ft Jaguar Land Rover logistics building in Ellesmere Port in a joint venture with Clearbell Capital.
Hugh Elrington, managing director, Barwood Capital said: “While no one could have predicted the events of 2020, we are delighted to have exceeded our total target raise and already committed to seven exciting opportunities. We warmly welcome our new investors and welcome back those who have invested with us previously. This is testament to our investment strategy focusing on the thriving industrial and alternatives sectors, our strong deal flow, the great team and partners we have and our ability to deliver returns with sustainable growth. We continue to spread our risk across the UK regions and sectors in which we invest and are fortunate to have a good pipeline of opportunities.”