Newcore Capital has acquired seven assets in Greater London and neighbouring commuter towns for £25 million, on behalf of its latest value-add social infrastructure fund.
The UK-based social infrastructure real estate investment manager acquired the assets on behalf of its latest value-add social infrastructure fund Newcore Special Situations V (NSS V).
Four assets in Greater London include children’s nurseries in Whitton and Clapham, both occupied by Fennies Day Nurseries Limited.
The portfolio extends to towns surrounding Greater London, including a school in Walton-on-Thames, Surrey, which Newcore has leased to Outcomes First Group, the UK’s largest independent provider of special educational needs.
The final children’s nursery, occupied by Monkey Puzzle Day Nurseries Ltd, is located in Beaconsfield, Buckinghamshire.
Newcore also acquired two petrol filling stations with electrical vehicle (EV) charging potential in Crouch End and Streatham.
Newcore acquired its first mortuary in Surrey, which Dignity Funerals Limited currently occupies.
”The acquisitions see Newcore Capital enter the funeralcare sub-sector for the first time, which is a market segment marked by a mismatch between supply and demand, driven by the UK’s ageing population and a limited land supply for the specialist use,” said the company.
The announcement follows the final close for NSS V in May, with Newcore securing £190 million in equity commitments.
Harry Savory, chief investment officer at Newcore Capital, said: ”Newcore is always looking for opportunity to invest in assets that provide essential services to society, and we are pleased to include funeralcare in our most recent acquisitions. It is a sector constrained by planning, which services a genuine societal need, particularly in locations with an ageing population.
“Newcore aims to deploy £350 million over the next two years for NSS V. Target asset classes include education and childcare, healthcare, storage, life sciences, waste management, roadside and transport.
“Newcore’s acquisition strategy is to acquire tired, short-leased or vacant assets, and land, typically between £2m-£25m in lot size, in good towns and locations. The investment manager then works with tenants to deliver future-proofed social infrastructure.
“Newcore, the UK’s first B-Corp certified real estate investment manager, currently manages £500 million in assets across its core-plus and value-add strategies and will continue deploying capital across the South-East of England.”
Newcore Capital CEO Hugo Llewelyn commented: “We set up this business to find the next wave of alternative asset classes to emerge as the ‘new core’ – a key pillar in institutional investors’ portfolios – and this has taken us into new sub-sectors like funeralcare and roadside real estate.
“Brexit, Covid-19 and the Ukraine War have all led to a focus on resilience – finding investments that will be immune to macro-economic shocks and technological disruption – and we can think of nothing more resilient than assets that enable the provision of basic, essential services to society.”
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