UK social infrastructure real estate investor Newcore Capital, investing on behalf of its latest value-add fund, has acquired a supermarket asset in London from British Land for £30m (€35m).

The Newcore Strategic Situations V (NSS V) fund has bought the 5.6-acre site in Bromley-by-Bow, comprising a 70,000sqft Tesco supermarket, a 558-space car park and a petrol filling station.

Newcore said NSS V acquired the assets with a plan to “unlock value from the site due to its strategic location in a key regeneration area in East London, while benefitting in the shorter term from the income generated by the existing occupier”.

Harry Savory, CIO at Newcore Capital, said: “We are pleased to have purchased the Tesco Bromley-by-Bow and we are actively on the hunt for further covered land plays in strategic locations where there is a medium-term opportunity to enhance value through increased provision of social infrastructure uses – this is a key criteria for us, alongside the potential for strong risk-adjusted returns”.

Hugo Llewelyn, CEO, Newcore Capital, said: “With the deflationary impact of the internet continuing to disrupt offices and retail, previously the mainstay of institutional investment in real estate, investors are increasingly looking for exposure to asset classes that demonstrate resilience to technological change.

”We see the broad spectrum of social infrastructure as presenting one route for institutional capital seeking sustainable income and capital value growth and the ability to deliver tangible positive impact.”

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