CLEVER PROPERTY, ENHANCING LIVES

Transcription

1 CLEVER PROPERTY, ENHANCING LIVES

2 DRIVING RETURNS

3 BARWOOD CAPITAL We have achieved outstanding returns for our investors by adding value to UK regional property through planning, development and intensive asset management. We invest alongside you, aligning our interests with yours, and whether you are an experienced individual investor, family office, charity or institution, you can expect to receive an exceptional service. Joanna Greenslade Managing Director Shrewd investors are increasingly aware of the prospects in the UK s regional real estate market and are looking for ways to access this valuable sector. Barwood Capital is a real estate investment and development business that specialises in finding and unlocking regional property opportunities for our investors, creating properties that enhance the lives of everyone involved. With a long established and respected business we have provided investors with reliable returns and a first-class service. Our roots go back 20 years and are centred in regional property development. We are based in the heart of the country and have an extensive understanding of regional markets and a regional perspective rarely found in London. At the same time, we have a strong and successful track record of being entrepreneurial during changing times. The four different property related businesses that Barwood has created have delivered over 13 million square feet of commercial property space and more than 5,000 consented residential plots. Today, we are experiencing unprecedented political, economic and technological change. Balanced with strong risk management, this environment enables us to achieve impressive yet reliable returns on your behalf as we use our acumen and creativity to turn change into opportunity. In this brochure you will read testimonials from investors and partners who have benefited from our regional knowledge and network, our intelligent thinking and agility, and our personal and responsive way of working.

4 STRONG ROOTS

5 BARWOOD CAPITAL As an investor, you are looking for enhanced returns from UK property. How do you achieve them with controlled risk and where can you find experts you can trust to deliver them? Barwood Capital Ltd (BCL) was founded seven years ago and is authorised and regulated by the Financial Conduct Authority (FCA). It was originally created by the directors of Barwood Developments Limited (BDL) to raise funds to support BDL s projects, as the institutional funding market had receded in BDL was established in 1996 and is known today as db symmetry, a leading UK property developer with a pipeline of around 30 million square feet of commercial property development. During the last ten years, the directors of BCL and BDL have also created two other successful standalone UK regional property businesses: Barwood Land and Barwood Homes, which between them control around 2,000 acres of land with potential for residential use. Development pedigree With a history rooted in successful property development, we are able to give you the benefit of our team s extensive expertise as property developers and asset managers who have delivered excellent returns directly from our own projects. Regional focus We only invest in UK regional property, where currently there are more opportunities to create value than in the London market. From our base in the Midlands, we have an outstanding understanding of local markets and an extensive regional network of agents and partners. So, you can gain access to under-priced, and often off market, opportunities enabling us to deliver excellent investment performance. Reliable returns Since 2009, we have invested in more than 160m of UK regional property assets and have consistently achieved high returns for our investors. Our extensive due diligence before securing sites and our detailed analysis of options, means that we manage risk effectively throughout an asset s ownership. The BCL directors are investors in all our funds and are absolutely focused on delivering outstanding returns whilst effectively managing risk.

6 IMPRESSIVE RETURNS I have been consistently impressed with the returns that Barwood is able to deliver and the professional manner in which they manage investors funds Mark Davies Chairman, Stonehage Fleming

7 BARWOOD CAPITAL A COMPANY WITH A SOLID BACKGROUND GIVES YOU PEACE OF MIND. HAVING BEEN IN BUSINESS FOR TWO DECADES, WE CAN DEMONSTRATE THAT WE ARE ABLE TO DELIVER OUTSTANDING RETURNS AND A RIGOROUS MANAGEMENT PLATFORM WHICH PROVIDES YOU WITH THE CONFIDENCE THAT YOUR INVESTMENT IS IN SAFE HANDS. What we have delivered 12%-20% per annum to investors, net of all fees Average project equity IRR of 30% on all projects completed to date How we achieved it By sourcing opportunities off market and/or below market price where we can add value By buying only in prime locations where occupational/tenant demand is high and supply is low, mitigating market risk By adding value and delivering high quality products, not only by intensively asset managing existing buildings but also through the skills of planning and developing new buildings By being accessible, honest and communicative with our partners Our philosophy and values Personal: We are responsive, helpful and open, and our high quality service is founded on strong, longlasting personal relationships with our investors, development partners, agents, banks and consultants Creative: We are effective, intelligent, agile, proactive, collaborative Aspirational: We take pride in our reputation for quality, creating first class environments for our occupiers, prime investments for our end buyers and outstanding returns to our investors Returns (net of fees) Investment Strategy Capital employed Investor Base 2015 Growth Fund On track to deliver target 15% p.a Investor IRR over 5 years Regional commercial and residential sites with potential for intensive asset management, development and planning 100m est Major UK pension fund, UK charities, HNWI 2012 Growth Fund On track to deliver target 15% p.a Investor IRR over 5 years Regional commercial and mixed use sites with potential for intensive asset management, development and planning 50m Major UK pension fund, HNWI 2009 Income Fund 12% p.a Investor IRR delivered, including 6% quarterly income return, over 5 years Regional commercial and mixed use sites with an existing lease in place and potential for intensive asset management or development 30m Local HNWI 2002 Growth Fund (managed within BDL) 20% p.a Investor IRR delivered over 3 years Regional commercial property development and asset management 12m Local HNWI

8 BRIGHT MINDS WHETHER YOU ARE AN EXPERIENCED PRIVATE OR INSTITUTIONAL INVESTOR, YOU REQUIRE YOUR INVESTMENTS TO BE WELL HANDLED BY PEOPLE YOU TRUST. OUR HIGH-CALIBRE PROFESSIONAL TEAM HAS DIVERSE, IN-DEPTH We have worked with the Barwood team on a number of projects over the years due to their entrepreneurial and professional approach. We are delighted with the range of opportunities the team has secured in the 2012 and 2015 Funds and believe they have excellent prospects. Paul Scott Head of Property, British Airways Pension Fund Alan Rudge Chairman As one of the founders of BDL, BCL s original parent company, Alan has been one of the creative forces behind the success and growth of the Barwood stable of companies over the last 20 years. Alan has more than 45 years regional property development, investment and asset management experience and has delivered more than 4.5 million square feet of exciting and entrepreneurial commercial property schemes worth over 600 million. Guy Brogden Non-Executive Director Guy founded, and until February 2014 was chief executive of Mayfair Capital, a property investment fund management business which manages over 900m AUM on behalf of charities, private clients and institutions. Prior to that he spent 25 years in commercial property investment, including establishing a highly successful property investment brokerage team at JLL.. Joanna Greenslade Managing Director Jo has taken a leading role in the creation and growth of Barwood Capital, Barwood Homes and Barwood Land since joining Barwood as Group Finance Director in Jo s strengths lie in strategic and financial analysis and control, and she believes strongly in open and transparent communication. Jo began her career at Ernst & Young before joining Reuters to create and manage an in-house global mergers and acquisitions team.

9 EXPERIENCE OF HANDS-ON UK PROPERTY DEVELOPMENT, INTENSIVE ASSET MANAGEMENT, LEASING, FINANCE AND BANKING. WHAT S MORE, ALL OUR BCL DIRECTORS PERSONALLY INVEST IN THE BCL FUNDS, SO OUR INTERESTS ARE ALIGNED WITH YOURS. Richard Bowen Director and Chair of Investment Committee Having founded BDL with Alan, Richard was originally Managing Director of both BDL and BCL. His key skills lie in identifying every opportunity to maximise a property s potential and mitigate its risks. He has 29 years experience in commercial property development, involving more than 20 million square feet of commercial property worth over 2 billion. Edward Henson Director Ed specialises in investing in and managing commercial property in the UK regions and has an extensive network of regional contacts. He has over 16 years property experience, having been Head of Property at Hotbed and a Partner at Riverside Capital, where he was responsible for the management and growth of a 250 million commercial property portfolio across the UK and Channel Islands. Andrew Barlow Director Andrew has a wide range of expertise and 15 years experience in commercial property investment, asset management and development. Prior to joining Barwood, Andrew was a Managing Director at MEPC and responsible for the asset management and development of mixed-use business parks with a combined value of 600 million. Previously he was a Director of Acquisitions and Development at ING Real Estate Investment Management. Steve Chambers Director Steve has over 30 years experience in commercial and corporate banking, having worked in senior positions at Lloyds, NatWest and Hill Samuel, lending to commercial and residential property developers and a range of corporates. Steve has strong personal relationships with senior executives at a significant number of traditional and new debt providers and has raised over 200m of senior bank debt for Barwood since 2000.

10 Illuminating opportunities The Barwood team are great to work with; they are responsive and commercial and more importantly are experts in property development. Jim Bryan Founder, Goya Developments TENANTS include Development Partners include

11 BARWOOD CAPITAL We manage projects inhouse or through strong relationships with reputable and experienced development managers who can extend our reach geographically or into asset classes that complement our internal team s expertise. Investors benefit from the fact that we are not wedded to one sector but will invest in a broad range of projects where there are opportunities to make returns, whether that is industrial, warehouse, office or residential property. Given our background in property development, we are in a unique position to offer effective and enjoyable partnerships to development managers across the UK who are looking for funding. Our approach is commercial, open and accessible. We work collaboratively and take decisions quickly. As a result, development managers and agents bring us great projects, often off market, and we gain access to their detailed local knowledge which complements our own capabilities. The following case studies demonstrate the number of sites we have across the UK and the breadth of our skills.

12 Office Woodlands Business Park, Milton Keynes Intensive asset management and development by BCL in-house team Off-market purchase of a 12.5-acre office park for 7.6m in October 2015 by 2015 Fund In severe need of investment but in an excellent location with extensive parking Bought with 40% vacancy in existing buildings (i.e. unlet space), reduced to 10% vacancy within six months of acquisition Revised master plan significantly improves infrastructure and provides up to 150,000 square feet of new prime grade A offices in an extremely undersupplied market Industrial Gatwick 55, Crawley Development with Goya Developments 2.25-acre industrial site acquired for 3m in November 2015 by 2015 Fund Superb prime location, one mile south of Gatwick Airport, with no competing supply and extensive demand Acquired with the intention of speculatively developing a 55,000 square feet warehouse. Secured largest independent UK furniture retailer as a tenant within six months of acquisition and before construction started. RESIDENTIAL Alderminster Development with Barwood Homes 5.5-acre residential site acquired in November 2015 for 3.1m by 2015 Fund Development of 25 private dwellings including provision of nine affordable units Alderminster is a highly sought after village close to Stratford-upon-Avon and the private housing will be a mixture of high quality 3, 4 and 5 bedroom detached houses.

13 Asset Management Re-geared existing leases to increase the average lease length and secure additional income Obsolete existing warehouse accommodation was demolished to reduce the Landlord s business rates liability by 450,000 per annum Planning Planning consent was secured for 600,000 square feet of distribution warehousing, 99 residential dwellings and a 36,000 square feet food store (supermarket) Letting Agreement to Lease secured for 36,000 square feet food store with Sainsbury s MIXED USE Wellesbourne Distribution Park This 70-acre industrial distribution park was purchased in a joint venture between Barwood s 2009 Fund and JP Morgan Asset Management in September 2011 for 20.75million. At the time of purchase the estate was made up of 750,000 square feet of industrial accommodation producing a net income of 1.6million per annum. Barwood used its extensive expertise to deliver considerable added value to the site by improving the current income stream, gaining planning consent for a mix of additional uses and crystallising profit through disposals of the component parts. Agreement to Lease secured for new build 228,529 square foot distribution warehouse for Aston Martin Disposal forward sale agreed for the Sainsbury s food store for 10.8million at a Net Initial Yield of 3.95% Residential element sold to a major national house builder for 6.35million Remaining Commercial element sold to an overseas Logistics Fund for over 40m Return Profile Overall project delivered a 32% IRR per annum and a 2.2x equity multiple over a 3 year timeframe

14 CLEAR BENEFITS A BCL fund is the closest you can get to investing directly in a property asset yourself, but with a lot less effort, more reliable returns and less risk due to the diversification of the portfolio and Barwood s expert management. Giles Wilson (Investor), Newnham Lodge LLP

15 BARWOOD CAPITAL Our objective is to deliver outstanding returns and a high level of personal service to our investors. Our range of investments allows you to diversify your risk, while our open communications ensure you maintain a sense of real asset ownership. A simple investment process From the moment our investors look to invest with us, we keep everything clear, open and simple. You will have one point of contact for all legal documentation and we will manage the process in detail. Comfort in governance arrangements Each of our funds has a property advisory committee which meets quarterly and has two investor representatives and an independent chair. Clear open and regular communication Our quarterly investment updates provide you with details of the precise assets invested in and their progress, alongside regular net asset value statements. You will also receive regular communications and announcements about acquisitions, disposals, planning and development activity. A personal log-in to our investor portal gives you access to legal documents, fund performance, current and past communications. An accessible senior team Our investor communications extend beyond the published word. We are not a faceless fund manager who treats investors as a number on a spreadsheet. You also get a personal line to the team. Join us as we continue to unlock underperforming UK regional assets and deliver outstanding investment performance.

16 Barwood Capital Ltd ( Barwood Capital ) is authorised and regulated in the United Kingdom by the Financial Conduct Authority (the FCA ). The information contained herein is not directed at any persons in the United States or any other jurisdiction where it would be unlawful to access this information. This document is not a financial promotion nor an invitation to invest in any of the investment vehicles (the "Funds") managed by Barwood Capital or its affiliates. The information contained herein should not be relied on as the basis of an investment decision or for any other purpose. The Funds are not recognised collective investment schemes for the purposes of the Financial Services and Markets Act 2000 (the Act") and are open to investment only by those persons who are categorised as Professional Clients or Eligible Counterparties within the meaning of the FCA Rules in relation to the Funds. Barwood Capital does not provide investments or investment services to persons who are Retail Clients. Units in the Funds are not dealt or quoted on a recognised or designated investment exchange for the purpose of the Act, nor is there a market maker in such units, and investors should therefore be aware that any investment made in the Funds is likely to be illiquid. Projected returns are subject to change and past performance is not a reliable indicator of future performance. The value of investments in the Funds, and the income from them, may go down as well as up, and investors may not get back all or any of the amount they originally invested. The Funds may be leveraged and their portfolios may lack diversification thereby increasing the risk of loss. The Funds are therefore speculative and performance may be volatile. The information, including any expression of opinion or forecast, contained herein reflects the most-up-to-date data at the time of publication and is based on proprietary information or on sources believed by Barwood Capital and its associated companies to be reliable, but is not guaranteed as to its accuracy or completeness. Barwood Capital and its associated companies, partners, officers, employees or agents are not liable for any reliance placed on the information contained herein. For further information please call Clever property, enhancing lives barwoodcapital.co.uk