mallowstreet University: Solutions Drive In - Examining Real Estate and Property – mallowstreet

Sponsored by

Barwood Capital

Barwood Capital is an FCA authorised UK real estate investment and development business with an excellent track record. We achieve outstanding returns for our investors by adding value to UK regional property through planning, development and intensive asset management and selling prime income producing assets into the institutional investment market.

With a long established and respected business we provide 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.

Since 2009, Barwood Capital has invested in more than £175m of UK regional property assets and consistently achieved reliable and high returns for our investors. We have delivered 12% per annum to investors net of all fees from our 5 year income fund raised in 2009 and we are on track to deliver between 15%-17% per annum to investors net of all fees from our two recent 5 year growth funds (raised in 2012 and 2015), which have a similar profile to the 2017 Fund we are currently raising.

Our current investment strategy is centred on three key themes:

Regional - We only invest in UK regional property (outside of central London) and from our base in the Midlands we have an unrivalled regional network of agents and partners. Investors benefit from access to our strong deal flow with over 50% of our current portfolio having been secured off market.

Industrial/Logistics - We have particular experience and expertise in this sector with around half of our current and previous funds being allocated to this area and we expect up to 75% of the new fund to be invested in this strong and resilient sector.

Adding Value - We create a cushion of profit by buying well and adding real value through planning, development and extensive asset management. We do not buy up and let properties for income only which we believe are more vulnerable to market shifts.

Our philosophy and values

Personal: We are responsive, helpful and open. Our high quality service is built on strong, long-lasting personal relationships.

Creative: We are effective, intelligent, agile proactive and 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.

AEW Europe

Konstanz Finance

Resonance

Resonance builds and manages impact investment funds, including a series of award winning, institutional grade property funds. We have 15 years' track record in UK focused impact investment across a wide range of sectors, and a team of over 30 professionals based across the country giving us reach and insight in the regions in which we invest.

The institutional investor world is increasingly focused on reducing risks from long term investment. Analysis of Environmental, Social and Governance risks is being embedded into portfolio management strategies. The rationale is simple, and particularly compelling in light of recent history - investments which take these factors into account are less likely to go wrong in the long term. Asset owners are rightly pushing for this move away from short term maximisation of absolute return, to strategies which look at returns on a long-term, risk-adjusted basis, taking into account these factors. This makes sense where liabilities are long term and, interestingly, often also correlated with environmental and social outcomes.

Resonance's impact investment funds seek to focus investment capital even more strongly on investments which have a defined and intentional positive impact on specific social issues - from financing the assets local communities need to remain resilient, to building the property portfolios which social sector organisations need to deliver their impact, to direct lending to growing businesses which are using a "social enterprise" approach to deliver both robust profits and intentional solutions to social issues.

This strategy is perhaps best viewed as a strong form of the "S" in ESG. And it is showing a number of benefits to institutional investors - some of which are interestingly counter-intuitive. Firstly, we find that the scale of need in some of the investment areas outlined above, particularly for property and community assets, opens up investment opportunities at institutional scale. Secondly, in many areas, the impact focus is actually opening up new markets and reducing risks to investors. At root, this is about socially focused enterprises having something of value - better information, unique experience and skills, stronger employee, customer and supplier relationships, access to new markets. If so, the capital which backs this approach can benefit from good risk-adjusted returns whilst seeing measurable long-term impact from its investment.

Just one example of this is our National Homelessness Property Fund which is achieving this in practice - good risk-adjusted returns on a highly diversified, large scale residential property portfolio, leases which insulate investors from the risks they cannot manage, and a measurable impact on one of the key issues in homelessness across the country.

Further information on our fund strategies and team are available at http://www.resonance.ltd.uk

mallowstreet University: Solutions Drive In - Examining Real Estate and Property

In this low yield environment, pension funds are increasingly looking beyond the staple diet of equities and traditional fixed income to find returns.

At this Drive In, delegates will hear from four expert managers who will share their insights on opportunities in the Real Estate and Fixed Asset Markets.

This event is designed for trustees and pension fund decision-makers only.

Speakers

Joanna Greenslade | Barwood Capital Managing Director, Barwood Capital
Jo joined Barwood Developments in 2006 as Finance Director and has been Managing Director of Barwood Capital since January 2015. Jo has taken a leading role in the creation and growth of Barwood Capital, Barwood Homes and Barwood Land which were created in 2009 as part of Barwood's diversification strategy in response to the downturn. 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 where she qualified as a Chartered Accountant before working in E&Y's London Corporate Finance Advisory department and was involved in a wide variety of UK and cross- border transactions including acquisitions, disposals, management buy outs and fund raising for both private and quoted companies.
Prior to joining Barwood, Jo spent 8 years with Reuters (now Thomson Reuters). Jo joined Reuters as Group Corporate Finance Manager in 1998 and was responsible for building a professional deal support team and providing oversight and advice to the Group Board on all transactions globally. These included the flotation of Instinet (US broker/dealer) on NASDAQ, the acquisition of Bridge Inc (US) out of bankruptcy and multiple acquisitions and joint ventures in Europe. At 28, she was promoted to the role of Finance Director of one of Reuters' four global divisions.
Jo is also a Trustee and Non-Executive Director of the Girls Day School Trust (GDST) which is the leading network of independent girls schools in the UK with 26 schools. Jo is a member of GDST's Academy Trust Board (ATB) and Chair of the Audit and Finance Committee for the ATB.
Ian Mason | AEW Portfolio Manager, AEW Europe
Ian joined AEW in 2015 and launched the AEW UK Real Return Fund in May 2016. He was previously Fund Manager of Schroders' UK Property Fund between 2008-2013 where he focused on delivering a sustainable income stream from a blend of traditional and alternative sectors (healthcare, car show rooms, student accommodation).
Prior to Schroders, Ian was at Blackrock where he devised strategies that focused on the needs of occupiers. Ian pioneered the use of indirects in a direct property strategy, together with investment in Alternatives (marinas, doctors' surgeries).
He is a past Chairman of AREF (Association of Real Estate Funds) and Chair of the Regulation Committee. He is a passionate advocate of listed and unlisted funds for long term savers, leading or participating in lobbying of government, HMRC and the Financial Conduct Authority.
Simon Chisholm | Resonance Investment Director, Resonance
Simon leads Resonance's activities in creating and managing impact investment funds.
He has over 20 years' experience in the finance sector, including sixteen years in a number of roles with N M Rothschild & Sons in the UK and internationally. As a Director with the company in London and Hong Kong he provided advice to corporate senior management teams, investment funds and government clients on finance raising and strategic transactions, predominantly in the infrastructure and energy sectors. Notable transactions included leading the privatisation of the Philippines electricity transmission system and pioneering institutional investment in UK offshore wind projects, including investment from Dutch pension fund PGGM.
Since 2012, Simon has led the establishment of Resonance's fund management arm and the launch of seven innovative UK impact investment funds with £150m funds under management, focusing respectively on investment into community-led asset projects, property for social sector organisations and growth capital for social enterprises.
James Hall | Konstanz Head of Distribution, Konstanz Finance
Heading up fund distribution in the UK, James has over 20 years' experience in financial services. With extensive experience in both investment and mortgage distribution running successful client facing businesses as well as a top 3 mortgage packaging organisation. With a background in property based investment James now looks after distribution in the UK for Konstanz working with investors to promote the benefits of Konstanz's investments in the German property market.

Program

9:00 AM Registration, tea and coffee
9:30 AM Session One: Resonance Ltd - New approaches to residential property investment at scale

Resonance will discuss how its unique approach to property investment is building institutional grade funds with diversified residential portfolios at scale across the country, accessing under-served markets, reducing risks, and generating an attractive blend of yield and capital appreciation, whilst creating long term benefit to the society into which pensioners will retire.
10:05 AM Session Two: Konstanz Finance Ltd - Providing yield from Real Estate

Konstanz Finance outline how investment in real estate, with a focus on Germany, can provide yield in a low interest rate environment. Konstanz will explain how their asset backed listed bond program offers fixed returns, fully asset backed and can help plug the yield gap.
10:35 AM Coffee, tea and networking
11:00 AM Session Three: Barwood Capital - Investing in UK Regional Property to Deliver Double Digit Returns

We achieve outstanding returns for our investors by buying underperforming or under managed assets in prime locations, adding value to UK regional property through planning, development and intensive asset management and selling prime income producing assets into the institutional investment market. We are currently raising our fourth fund with a particular focus on logistics/industrial.
11:35 AM Session Four: AEW - How real estate can generate inflation linked returns from a secure diversified income stream

This session will focus on the role which alternative real estate sectors can play in a low income environment as well as how real estate income strategies are meeting the needs of pension investors targeting cash flow and liability focused solutions, including AEW's UK Real Return Fund.
12:05 PM Lunch and networking
1:00 PM End

mallowstreet University: Solutions Drive In - Examining Real Estate and Property

Speakers

Program

9:00 AM Registration, tea and coffee

9:30 AM Session One: Resonance Ltd - New approaches to residential property investment at scale

10:05 AM Session Two: Konstanz Finance Ltd - Providing yield from Real Estate

10:35 AM Coffee, tea and networking

11:00 AM Session Three: Barwood Capital - Investing in UK Regional Property to Deliver Double Digit Returns

11:35 AM Session Four: AEW - How real estate can generate inflation linked returns from a secure diversified income stream

12:05 PM Lunch and networking

1:00 PM End