Newcore Capital Management’s latest social infrastructure, storage and accommodation fund has acquired £20m (€22.6m) worth of assets in the south of England and the Midlands.
The Newcore Strategic Situations IV value-add fund has made five investments in Virginia Water, Warwick, Streatham, Croydon and Oxford.
The manager said the largest of the five deals is the £6m purchase of Kitsmead Recycling Centre in Virginia Water, a town in northern Surrey. The asset comprises 21 acres of waste management and open storage uses, let to a variety of companies.
In Warwick, Newcore has acquired a vacant 29,000sqft storage facility on a two-acre site on Harris Road in the Wedgnock Road Industrial Estate. Newcore will refurbish the facility and lease it to a single occupier.
In Streatham, Newcore has acquired a children’s day nursery and medical centre investment at Blegborough Road. The 8,500sqft building is let to NHS Property Services and Bright Horizons with three years unexpired.
In Croydon, Newcore has acquired a one-acre open storage site on Beddington Farm Road, the town’s main industrial area and will lease it to Arriva on a new 15-year lease, subject to obtaining planning consent for use as a bus storage depot.
In Oxford, Newcore has exchanged contracts to purchase a 31,000sqft automotive showroom and workshop on a 1.4-acre site in Cumnor Hill. Newcore has agreed a new 15-year lease to Waylands Volvo, which will commence on completion of the acquisition.
Hugo Llewelyn, Managing Director of Newcore, said: “All five investments provide excellent scope for our value-add strategy, which we believe should generate attractive returns for our investors.”
Last week, Newcore announced the first close of the value-add Newcore Strategic Situations IV fund. The fund secured equity commitments of £55m from two UK local authority pension funds, including Merseyside Pension Fund, as well as its existing family office client base.
The alternative real estate investment manager said a final close for the fund, which targets a £100m fundrais, is expected to take place in the first quarter of 2019.
The fund will aim to deliver an annual 14-16% net internal rate of return to investors.