A UK commercial ground rents fund managed by Alpha Real Capital has agreed a deal comprising 16 day nurseries.

Alpha Real Capital said this is the second transaction its Index Linked Income Fund (ILIF) has completed with Busy Bees. In total, the number of Busy Bees nurseries owned by ILIF is now 109.

Anthony Curl, co-head of long income at Alpha Real Capital, said ILIF now owns 125 nurseries across two operator groups with a total ground rent valuation of over £100m (€116.4m).

“This has helped ILIF reach over £1bn of social assets, demonstrating the scalability of our social long income strategies”

Phillip Rose, CEO at Alpha Real Capital, said: “Alpha works very closely with real estate owners and operators to deliver flexible long-term capital solutions.

“Investing in social real estate is one route for investors to make a positive impact on society while at the same time achieving predictable cashflows over long periods of time with significant component of returns linked to inflation.”

ILIF invests in portfolios of UK ground rent assets to provide a long-term secure and predictable inflation-linked income stream with associated capital growth. The £1.8bn fund seeks to invest in existing portfolios and assets as well as opportunities to create new ground leases.

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