Catalyst Capital and Investec have backed Fairway Capital’s prime central London residential fund.
Catalyst has increased its commitment to £20m in equity and Investec has agreed to support this with £100m in debt.
Fairway Capital Property Fund launched its second raise at the end of June, targeting £100m of equity for luxury residential development in the capital.
The fund is available to investors and is subject to a minimum subscription of £250,000.
It was launched last year with an initial target of £120m and an IRR of 12-15%. It has since raised £100m in equity and almost doubled the target.
The fund has so far acquired nine value-add properties this year to date, including six assets from Grosvenor Estate, in Belgravia and Knightsbridge, with a combined value of £70m.
George Brooksbank, founder and chief executive of Fairway Capital, said: “Typically our investor base consists of family offices and HNWIs 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.”
Fairway works with developer Leconfield, which has developed £500m of projects in prime central London and previously developed Margaret Thatcher’s former home on Chester Square.
It is supported by an advisory board including former Citigroup banker James Goldie, Neo Capital chief executive Hani Obaid, and Havery White Properties founder Charles Delevinge and advised by Savills.
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