Barclays funds Harwood’s £120m Scottish portfolio buy

Barclays is financing a regional portfolio that Harwood Real Estate bought from the Co-op in December for about £120m. The bank provided a £76m loan, managed and funded by Barclays’ Edinburgh Corporate Banking office. The mixed-quality portfolio includes retail warehouses, shops and industrial properties; the blended initial yield was in the region of 7.5%.

Harwood Real Estate is part of Harwood Capital, founded in 2011 out of the sale of JO Hambro Capital Management. It is a new client for Barclays. The firm is a secondary and distressed property specialist and one of its first deals was buying a £52m portfolio of mainly Scottish office and industrial assets, with RBS and West Register, using stapled debt. Jamie Grant, Barclays’ head of corporate banking in Scotland, said his team’s property lending had risen 75% in the past 12 months.