Catalyst Capital & Investec back Fairway Capital prime central London residential fund
Fairway Capital, investment advisor to the Fairway Capital Property Fund (“the Fund”), has secured a debt facility with Investec alongside cornerstone investor, Catalyst Capital.
The fund is currently in the middle of its second raise and is targeting GBP100 million of equity.
George Brooksbank, founder and CEO of Fairway Capital, says: “Typically our investor base consists of family offices and HNWI’s and, while these remain active, we are seeing much increased interest from institutional investors, who recognise this as a once-in-a-generation opportunity to invest in PCL. As this market has endured its longest suppression since the Great Depression in 1932, we feel that Covid will keep transaction volumes at record lows and should soften pricing, so being in a position to capitalise on this brief window is critical.”
Brooksbank adds: “In macro-economic terms, Covid is just about as bad as it gets. Yet, if current conditions grant us access to some of the more rarely traded properties in London’s golden postcodes, there is enormous opportunity to add value in this historically robust market.”
The Fund has just purchased nine value-add properties this year to date, including six assets from Grosvenor Estate, in Belgravia and Knightsbridge with a combined value of GBP70 million.
Fairway Capital will work alongside development partner, Leconfield, a sophisticated and experienced developer in the PCL market, which has delivered some GBP500 million of projects in the target area and is responsible for flagship schemes including the redevelopment of Margaret Thatcher’s former home on Chester Square. Leconfield’s significant in-house resources (construction, architects, surveyors, interior designers and bespoke joinery), combined with Fairway Capital’s financing and purchasing acumen, is the point of difference that will add value to each and every acquisition and will underpin the projected returns.
The Fund benefits from a first-class Advisory Board made up of experienced finance and real estate experts including: James C Goldie, a senior banker who has served roles in Citigroup, Credit Suisse, Deutsche Bank and JP Morgan; Hani Obaid, CEO of NEO Capital in Dubai and Charles Delevingne, founder of Harvey White Properties Ltd. They are supported by some of the sector’s leading consultants and advisers, including CMS (lawyers), PwC (auditors), Savills (valuers) and VG (Jersey fiduciary).
The Jersey Expert Fund was launched last year to take advantage of the unique opportunity created by Brexit and recent uncertainty surrounding Covid The add value components the Fund’s strategy provide a hedge against any further decline and ensure no reliance upon capital growth to deliver risk adjusted returns in investors in the mid-late teens (IRR). Investors will benefit from added security via a Put Option, which guarantees liquidity when the Fund’s term expires with the option of disposing of any remaining properties in the Fund to a third-party investment group.
The Fund is available to Expert Investors and is subject to a minimum subscription of GBP250,000.