UK regional real estate investor Barwood Capital has raised £110m (€124m) for its latest property fund.
The manager said the Regional Property Growth Fund IV, which received capital backing in the form of equity both directly and through co-investment, exceeded its fundraising target by £10m at final close.
Investors in the Growth Fund IV fund 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 manager said.
The total forecasted assets under management, including co-investment, is over £205m.
The closed-ended fund, launched in spring 2019, is focused on UK regional property outside London which can generate internal rate of returns of 13-15% per annum. It targets industrial, alternatives, selective offices and real estate opportunities benefitting from improved infrastructure investment.
Barwood said Growth Fund IV has already invested in seven projects across the UK regions including 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 440,000sqft 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.”
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