Barwood Capital has announced the biggest fundraise target for its Growth Fund VI, a six-year closed-ended vehicle targeting £300m to capitalise on the ‘fourth industrial revolution’.
The fund, which has a hard cap of £400m, will be fundraising throughout the year, with a final close planned for the second quarter of 2027.
“UK industrial and logistics real estate, underpinned by structural shifts driving strong occupier demand and a persistent lack of modern, flexible and sustainable space, creates an opportune time to invest in the sector,” said Danielle Tyler, Barwood’s head of performance and impact.
“These are trends we expect to see accelerate in the near term as the dynamics underpinning the ‘fourth industrial revolution’ take effect, driven by the coming together of digital technologies, AI, automation and low-carbon innovation, all of which are fast transforming how goods are produced, stored and moved.”
The fund will focus on high potential subsectors and locations where constrained supply and rising demand are expected to deliver superior returns.
Barwood has already identified an immediately deliverable pipeline of £260m across 4m sq ft of potential acquisitions, with further off-market opportunities totalling approximately £750m under active review.
Hugh Elrington, managing director at Barwood, said: “Barwood Growth Fund VI will represent a major milestone for the growth of our business. The industrial and logistics sector is undergoing fundamental transformation driven by technology, automation and evolving consumer behaviour, and we are exceptionally well positioned to acquire and reposition assets that are best placed to serve the UK’s future industrial economy.”
Tyler added: “Investors are increasingly seeking resilient and sustainable industrial strategies, backed by long-term-structural drivers.
“Our approach of combining refurbishment, active asset management, development and strong ESG principles ensures that we are creating sustainable long-term value for both our investors and the communities we invest in.”
Barwood has a long-standing track record in UK industrial and logistics real estate, having to date averaged a 19% internal rate of return (gross) across its industrial investments since 2009.
The company has managed more than 5.75m sq ft of industrial property since its inception and maintains £775m in assets under management.
In October, Barwood acquired a two-acre freehold site in Stevenage, Hertfordshire, housing a redundant office building where it plans to speculatively develop a 36,000 sq ft industrial unit.
