Bridges Fund Management, the London-based impact investor, has closed its fourth real estate investment vehicle after pulling in £220 million ($285 million; €249.9 million) from a range of institutional investors.
Bridges said its latest vehicle, Bridges Property Alternatives IV, would continue the firm’s stated strategy of investing in emerging UK locations and niche sectors affected by changing demographics, such as healthcare, education and affordable residential, and then adding value through environmental refurbishment and operational improvement.
In July, Bridges held a first close for the fund, collecting around £168 million just three months after its launch. With its latest fundraise, the firm has added an extra £58 million of fresh capital in the last 11 months – and achieved its largest capital raise to date. The fund had a hard-cap of £250 million.
Investors in the vehicle include UK local authority pension funds such as Greater Manchester, West Midlands, East Riding and West Yorkshire; the Environment Agency Pension Fund; the US-based Church Pension Fund; as well as a number of unnamed family offices and foundations.
A Bridges spokesman said the range of investors attracted to the fund reflected both the growing institutional interest in sustainable property investment and the strong financial track record that the firm has developed across its three previous real estate vehicles.
Bridges’ previous property fund, Bridges Property Alternatives III, held a final close on £212 million in June 2015, surpassing its target of £200 million. The vehicle is now fully invested.
The firm is targeting an internal rate of return of 15 percent for its latest fund.
“Our last three funds have demonstrated very clearly that by investing in needs-driven sectors where we can promote greater inclusivity and sustainability, we can not only deliver powerful societal impact but also strong financial returns for our investors,” said Simon Ringer (pictured), partner and head of property funds at Bridges.
“The success of this fundraise is testament to that, and we are excited to have the opportunity to demonstrate this again in the coming years.”
Bridges has already completed four acquisitions using capital from the fund: a development of 500 low cost housing units in Croydon, south London; a mixed-use light industrial and office project near Birmingham; a shopping center in Glasgow, Scotland; and a senior care portfolio located across southern England. The transaction prices were not disclosed.
The firm was previously known as Bridges Ventures but changed its name to Bridges Fund Management on March 1.