UK social infrastructure real estate investment manager Newcore Capital Management is planning to raise £300m (€349.2m) for a new value-add fund.
The manager said it has launched Newcore Strategic Situations (NSS) V and already has a £60m investment firepower after receiving capital commitments from its existing investor base.
NSS V will target assets linked to social infrastructure, such as education, healthcare, transport, waste management, retirement living, life sciences and environmental infrastructure.
NSS V will focus on investing in assets that deliver essential services to society, which require repositioning, modernising or refurbishment to bring them up to institutional and future-proof quality, the manager said.
Newcore Capital said NSS V – a closed-ended fund with a seven-year life – will aim to deliver an annual 13-15% net internal rate of return to investors, using sustainable leverage of up to 30% on a loan-to-value basis.
NSS V will be an Article 9 fund under the EU Sustainable Finance Disclosure Regulation (SFDR), the highest green rating of positive impact that an alternative investment fund manager can achieve.
Hugo Llewelyn, CEO of Newcore Capital Management, said: “We are pleased by the initial level of institutional and family office investor interest for this, our fifth fund, reflecting our specialist, value-add strategy and the success of our first four funds.
“We are particularly pleased that the fund measures up to the requirements of Article 9 of the EU SFDR and will be categorised as such in positive impact terms.”
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