Barwood deploys biggest residential fund to date as market picks up pace
Barwood Capital (“Barwood”) has deployed three residential funds in 2024, including its largest to date.
The Barwood Residential Investment Platform (BRIP) frequently raises £3-6 million funds that are invested in at least three standalone development sites, giving private investors access returns from a diversified portfolio of property developments, and experienced SME housebuilders access to joint venture funding.
BRIP 10 closed at a record £6m. It has been invested in seven sites across four counties including projects in Edinburgh (11 flats), Sway (46 homes), Horley (10 homes), Houghton (six homes), Shalden (four homes), Godalming (three homes) and Stevenage (five homes), providing a total of 85 homes that will create £50m of value.
BRIP funds are open to professional investors for a minimum investment of £100,000. Each fund is invested in a number of carefully selected development opportunities, which are delivered with best-in-class SME housebuilders. The latest BRIP fund is a perfect example of how the portfolio approach spreads the investment risk. For example, a £100,000 investment in BRIP 10, equates to an average investment of £14,000 per project and about £1,000 per house.
The news comes as Halifax data found that house prices rose 3.3% in the year to December 2024, while Capital Economics expect house prices to increase 3.5% in 2025.
Hugo Trower, Chief Operating Officer (COO) of Barwood’s Residential Investment Platform, said:
“There’s clear demand for equity from SME housebuilders up and down the country and we’re delighted to be able to help our partners acquire more sites and deliver more homes.
“We’re looking to accelerate the growth of our investment platform in 2025 to support more housebuilders and we’re seeing increasing interest from investors who are moving away from the buy to let market. With increased regulation and costs for buy to let landlords, BRIP offers an alternative way of generating returns, but without any of the operational hassle and cost.”