We advised on the intial close of the £42m fund raised for Northampton-based Barwood Capital
Investor demand for exposure to the UK’s distribution warehouse market helped exceed the target for the fund.
We advised Northampton-based real estate investment and development business, Barwood Capital on the initial £42m close of its 2017 UK regional property fund.
The fund focuses on property assets within the UK’s prime regional markets outside of London. The £42m raised will be invested in sites which have the potential to increase in value through careful planning, redevelopment and asset management. Approximately 70% of equity in the fund will be allocated to logistics and industrial properties.
Following the fund’s initial close, a similar sum is estimated to be raised in further closes during the next few months from a variety of investors including High Net Worths, and family offices, and, with leverage, the Fund is expected to have a potential total buying power of £150m.
The Fund will aim to deliver investors IRRs of 15% per annum net of all fees over the five year period, with a maximum 50% LTV gearing and a minimum £1m subscription.
Strong demand from investors looking for exposure to the UK’s distribution warehouse market helped to drive investment into the fund. The growth of e-commerce has meant that occupier demand for warehouses has grown significantly as retailers increasingly need substantial space to hold stock.
Nick Lloyd, Principal in our Corporate team comments: “We were delighted to advise Barwood Capital on this deal close. We’ve worked with Barwood for over 15 years; they have a strong history of delivering investors strong returns from investments in growing areas of the real estate market.”
“This builds on EMW’s lengthy track record in advising on fundraisings in the real estate sector.”
Nick Lloyd, Principal worked on the fundraising.