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First investment for new fund

BARWOOD Capital, the Northampton-based UK regional real estate investment and development specialist, has acquired the first property in its Regional Property Growth Fund IV.

Plot 3 at Eurolink Business Park in Sittingbourne, Kent has been acquired from Trenport Investments for £2.25 million.

Plot 3, named Trilogy, totals 4.2 acres and is located in East 5, the fifth phase to expand one of Kent’s largest business parks. The 28-acre site was allocated in Swale Borough Council’s local plan for R&D, light industrial, manufacturing, warehousing and distribution companies. The site currently has outline consent for up to 462,884 sq ft (43,000 sq m) GEA, and occupiers already include Cook, Doka, Pickering and Salvatori Medway.

Barwood Capital has submitted a reserved matters planning application for Trilogy to Swale Borough Council, totalling 84,000 square feet (7,803 square metres) across three units. Subject to planning, the site will be speculatively built with development manager Tavis House Properties.

Richard Hall, chief executive officer, Trenport Investments said: “Eurolink continues to have success along with the performance of all our projects in Kent and we are very much looking for more opportunities. I think it’s a shrewd purchase for Barwood Capital as all other plots have been acquired by owner occupiers and we only have 2.3 acres remaining.”

Ed Henson, director, Barwood Capital said: “Our new fund’s focus is on opportunities where there is an undersupply and good occupational demand. Sittingbourne’s location in the Thames Gateway, with good access to the M2 and M20 and links into London’s south east and south coast ports, means it is in a great location for logistics and manufacturing companies looking for new space. There is currently a lack of supply in the area and we are speaking to both local and national operators needing space quickly to grow. We have committed to speculatively developing the three units at Trilogy, subject to planning. We also have a clear pipeline of further opportunities in which to invest for our latest fund.”

Barwood Capital recently announced it had raised £50m for its Growth Fund IV, a five-year closed ended fund with a target investor IRR of 13-15 per cent per annum, that will invest in UK regional property outside London, driven by significant ongoing changes in technology, infrastructure and demographics.

Hugh Elrington, Managing Director, Barwood Capital added: “We are on track to achieve our target of £100 million, with a hard cap at £150m due to our recent fundraising and planned future closes. We have three further investments under offer in the industrial and alternatives sectors with other opportunities being considered.”

Caxtons acted on behalf of Barwood Capital; JLL and Harrisons acted on behalf of Trenport Investments Ltd.

For further information, visit Barwood Capital

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