Barwood Capital’s fourth UK regional property fund has exceeded its fundraising target at final close.
Barwood Capital said its 2017 Property Fund has secured £76m (€84.8m) and with leverage, will give the fund a total capitalisation of £150m.
As reported last year, Merseyside Pension Fund is among investors in Barwood Capital’s real estate fund.
Other investors include British Airways Pension Investment Management, high-net-worth individuals and family offices, Barwood Capital said today.
British Airways Pension Trustees was also among investors that have backed Barwood Capital’s previous fund.
The new five-year fund, which is closed-ended, will exploit the arbitrage between undermanaged secondary commercial property stock and prime income producing investments in prime regional markets outside London.
The fund will focus on lot sizes between £3m and £20m in urban logistics and distribution warehouses and also selected regional offices in addition to an allocation to residential property.
Barwood Capital plans to deliver a net internal rate of return of 15%.
Joanna Greenslade, a managing director at 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 have already secured two excellent sites, which will be the subject of separate announcements shortly, and have a strong pipeline of further opportunities.”