Newcore Capital, the UK-focused real estate investment manager specialising in social infrastructure, has achieved first close for its sixth fund within its flagship value-add series.
The manager said Newcore Strategic Situations VI (NSS VI) attracted equity commitments from a local government pension scheme (LGPS) pooled fund, an additional direct LGPS and a European fund-of-funds manager, alongside continued support from existing investors and two new institutional limited partners.
The closing means that NSS VI immediately has £150m (€173m) of investment capacity to deploy across opportunities in UK social infrastructure in sectors including healthcare, education, childcare, transport, waste management, energy and storage.
NSS VI is a close-ended vehicle with a fixed life spanning seven years. The fund has an equity hard cap of £300m targeting final close by the second quarter of 2027, and aims to deliver a net levered internal rate of returns to investors of 12% to 14% per annum, with a maximum leverage of 40% loan to value.
Newcore said that it expects NSS VI “to deliver significant positive social impact”, alongside financial returns, given the fund will be taking planning, leasing and refurbishment risk to create and improve assets. The manager added that this change “can and will be measured and reported”.
NSS VI follows the continued success of Newcore’s value-add series, which has deployed a cumulative £275m in the last 24 months. Since securing £190m in equity commitments in May 2023, the predecessor fund, Newcore Strategic Situations V, is on track to deliver target returns and measurable positive social impact, the manager said.
Newcore Capital CEO, Hugo Llewelyn, said: “We are delighted to announce the first institutional closing of NSS VI, in difficult capital raising markets. Our strategy aims to solve the shortage of capital available to improve and lease affordably the buildings and land critical for the dignified delivery of UK social infrastructure services.”
Today’s announcement follows a second close for the Newcore Social Infrastructure Income Fund, a £375m open-ended core-plus vehicle owning functional social infrastructure real estate assets, in December 2025.
Newcore Capital COO Tim Thorp added: “The first close for NSS VI, welcoming new and existing investors, reflects investor confidence not only in our value-add strategy, but also in our capital management capabilities given what continues to be a highly selective fundraising environment for real estate.
“Building on the strong performance of previous funds, we are pleased to bring together a group of like-minded investors to achieve a first institutional close for NSS VI.”
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