UK asset manager Barwood Capital has closed its Regional Property Growth Fund IV and raised a combined £110 mln (€124 mln) of equity both directly and through co-investment, £10 mln above its target.
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.'
Barwood Capital launched its fifth property fund in spring 2019, a closed-ended vehicle focusing on UK regional assets outside London supported by significant ongoing changes in technology, infrastructure and demographics.
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 assets under management, including co-investment, is over £205 mln. 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 (17,000 m2) 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 ft2 Jaguar Land Rover logistics building in Ellesmere Port in a joint venture with Clearbell Capital.
