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EMW advises on GBP42m fund raise for Northampton based Barwood Capital

EMW, the commercial law firm, has advised Northampton-based real estate investment and development business, Barwood Capital on the initial GBP42 million close of its 2017 UK regional property fund.

EMW explains that the fund focuses on property assets within the UK’s prime regional markets outside of London. The GBP42m raised will be invested in sites which have the potential to increase in value through careful planning, redevelopment and asset management. Approximately 70 per cent 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 GBP150 million.
 
The Fund will aim to deliver investors IRRs of 15 per cent per annum net of all fees over the five year period, with a maximum 50 per cent LTV gearing and a minimum GBP1 million subscription.
 
EMW says that 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 at EMW, says: “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 and Rachel Cox, Trainee Solicitor from EMW worked on the fundraising.

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