Barwood Capital, a UK real estate investment and development specialist based in Northampton, has closed its Regional Property Growth Fund IV.
The original fundraising target was set at £100 million, however Barwood managed to exceed this and raise £110 million of equity both directly and through co-investment. Barwood launched its fifth property fund in the spring of 2019. The five-year closed-ended fund will invest in UK regional properties outside of London and will look to capitalise on changing technology, infrastructure, and demographics.
With a target investor IRR of 13-15% per annum, investors are also able to take advantage of opportunities for significant co-investment. Over 80% of the investors in this fund were repeated investors for previous Barwood Capital funds that include institutions, family offices, charities, and high net-worth individuals.
The total forecasted assets under management, including co-investment, is over £205 million.
Good occupational and operator demand have acted as key markers for the fund, which has already invested in seven projects across the UK. Some of these projects have included a 4.2-acre industrial development site in Sittingbourne and an 11.25-acre industrial development site at Bardon in Leicestershire (pictured above).
Hugh Elrington, Managing Director of 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 a 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.”
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