JOANNA Greenslade, managing director of Barwood Capital, the Northampton-based real estate investment and development business, discusses the firm’s impressive business growth plans, why Northampton is so important for the business, and how their entrepreneurial flair has seen investors receive on average 15 per cent per annum returns.
How long has Barwood Capital been operating in Northampton?
Barwood Capital has been in Northampton since 1996. We were established out of Barwood Developments Limited, in 2009 and since then have invested in over £250 million of UK regional property. We started with four people and are now 17-strong, with more recruitment under way.
What is your role?
As managing director, I’m responsible for overall corporate strategy and management, fund raising and investor relations. Guy Brogden is our chairman and we recently recruited Hugh Elrington as head of property. Such is our growth, we are currently recruiting an Asset & Project Manager and an analyst to support our property team.
What does Barwood Capital do?
We focus on sourcing and adding value to underperforming regional property opportunities through enhanced planning, development and extensive asset management. We create first-class accommodation for our occupiers and their staff, prime investments for our future buyers and outstanding returns to our investors. Barwood Capital is now managing its fourth fund and has achieved, or is on target to achieve, investor returns of 12 to 16 per cent IRRs per annum.
We have a long track record in ‘shed’ development, which range from the big distribution centres you see at the side of motorways to small ‘last-mile’ distribution warehouses on the outskirts of towns, that are mainly there due to the unstoppable rise of internet retailing. Such sheds are a hot topic and a lure for our investors. We also invest in offices, retail, residential, hotels and other property which includes student and key worker accommodation.
The average lot size for us is £5m to £20m, but we are seeking larger opportunities to co-invest with bigger investors who have expressed keen interest to do this.
How has your latest fund raise gone?
Our 2017 Fund raised £76m from sophisticated private investors, family offices, and charities plus British Airways and Merseyside Pension Funds. We have been busy investing the funds with recent acquisitions in Bristol, Yorkshire and Crawley.
How is Northampton important to you?
Our roots are here which is why when we needed more space than we had in Grange Park, we knew we wanted to stay in the town. We moved to our new offices in Waterside Way at The Lakes in December, a good part of which our team originally developed. Being in the heart of the country, we can be anywhere in just a few hours.
We own and manage property from Manchester to Crawley to Bristol and then more locally in Northampton, Milton Keynes and Cambridge.
On our doorstep, Northampton Borough Council has recently approved outline planning permission to build up to 400 nursing or student bedrooms on surplus land to the rear of Riverside House on Bedford Road. It’s a game-changer as the development will enhance the area and bring vital accommodation to the hospital.
We hope to invest further in the town and the local area.
What are your growth plans?
Since 2009 we have invested in and managed more than £250m of the UK’s regional property assets. We are looking to double that in the next three to five years.
Has your business model changed?
We continuously adapt to the market and forecasts. But as well as managing our own developments, we also work with third party developers and development managers. We are keen to build strong long-term relationships with creative and aspirational people.
What’s the future?
More recruitment, investing our 2017 Fund monies into key commercial and residential buildings, launching new funds now and in 2019/20, managing all our funds to deliver above target returns and growing our investor base – simple!
To find out more, visit www.barwoodcapital.co.uk