Bridges closes Property Alternatives Fund IV on £220m

30th June 2017
  • This is Bridges’ fourth specialist property fund, and its largest investment vehicle to date
  • The vehicle has attracted a range of investors, including local authority pension funds, financial institutions and foundations
  • It will follow the same strategy of investing in emerging locations, niche sectors and value situations, delivering strong societal impact and attractive financial returns

Bridges Fund Management (“Bridges”), the specialist sustainable and impact investor, announces the final close of Bridges Property Alternatives Fund IV (“Fund IV”) with commitments of £220m.

The Bridges Property Funds invest in property or property-backed businesses that are helping to tackle pressing social and environmental challenges – for example by helping to regenerate underserved areas, finding better care solutions for our ageing population, or reducing carbon emissions from existing building stock.

Fund IV will continue Bridges’ proven investment strategy of investing in emerging locations and niche sectors affected by changing demographics and/or consumer needs – like healthcare, education, SME business space and affordable residential accommodation – and then adding value through environmental refurbishment and operational improvement. This focus has allowed Bridges to deliver powerful societal impact and strong financial returns across all three of its previous specialist property funds.

Bridges’ previous property fund, Bridges Property Alternatives III, held a final close on £212m in June 2015. That fund is already fully invested or committed, reflecting the strong level of dealflow Bridges has been able to access from its strong regional networks and joint venture partners.

Fund IV has already agreed four transactions, many of which continue the investment themes identified in Bridges’ previous funds:

  • A new development of over 500 units providing much-needed lower-cost housing in a regeneration area in central Croydon;
  • A mixed-use light industrial and office development in Cannock, which is bringing a disused colliery site back into economic use;
  • A community shopping centre in Cumbernauld, near Glasgow, which plays an important role in the local area and serves as an employment hub;
  • A new Assisted Living venture called Birchgrove, which will provide high-quality rental accommodation for the elderly – plus hospitality and care – at a number of purpose-built sites across the South of England

Investors in Fund IV include several local authority pension funds (e.g. Greater Manchester, West Midlands, East Riding and West Yorkshire); the Environment Agency Pension Fund, US-based Church Pension Fund, family offices and foundations. This reflects both the growing institutional interest in sustainable and impact-driven property investment, and the strong financial track record that Bridges has developed across its three previous property funds. In the last three years, Bridges has completed over 20 realisations, with IRRs ranging from 11% to 57%.

Simon Ringer, Partner and Head of Property Funds at Bridges Fund Management, said: “We are very grateful for the support of our investors in enabling us to reach a final close on our fourth property 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. 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.”

 

Notes to editors

About Bridges Fund Management

Bridges Fund Management (formerly Bridges Ventures) is a specialist fund manager focused exclusively on sustainable and impact investment, with offices in London, New York and San Francisco. Since 2002, the firm has raised nearly £900m to invest in SMEs, properties and social sector organisations that are helping to tackle some of society’s biggest challenges, with a focus on four ‘themes’: health & wellbeing, education & skills, sustainable living and underserved markets.

The Bridges Property Funds invest in niche real estate opportunities arising from demographic shifts and changing consumer needs in areas like healthcare, education, SME business space and affordable residential accommodation. Property Alternatives Fund IV is Bridges’ fourth specialist property vehicle, and the 12th raised by the manager to date.