UK manager Newcore Capital has sold two industrial open storage assets in Greater London for a total of £22m (€26.3m).
Newcore sold an 11.45-acre asset in Ickenham for £10m and an 8-acre asset in Harefield for £12m on behalf of its fourth value-add fund Newcore Strategic Situations IV (NSS IV).
The investment manager, specialising in social infrastructure real estate, said the assets were acquired in 2021 in separate transactions.
To date, NSS IV has realised £45.5m from asset sales, delivering a gross levered internal rate of return of 21.9% and a 1.83x gross levered equity multiple, the manager said.
Hugo Llewelyn, CEO, Newcore Capital, said: “These disposals adhere to our value-add strategy of investing in assets that can be repurposed to enable societally critical services that require the use of physical space and are thus resilient to the deflationary effects of technological change.
“We are now in the process of returning capital and profits to our Fund IV investors and remain well-on-track to deliver a strong risk-adjusted result, notwithstanding the seismic changes in the capital markets midway through the life of the fund.”
Harry Savory, CIO, Newcore Capital, said: “Industrial open storage’s appeal lies in an under-supply of available sites, supporting rental growth, as suitable land is often reallocated to residential and other uses, which limits new development prospects and enhances the attractiveness of existing assets.
“This is especially true of the Greater London area, which is of strategic importance to businesses related to the manufacturing and construction sectors servicing clients with activities in the capital.”
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