UK social infrastructure real estate manager Newcore Capital has sold an industrial open storage (IOS) asset for £22m (€25.3m).
In 2018, Newcore acquired the 20-acre site in Longcross, Surrey, for £6.4m. It then invested £8.8m to develop a 7-acre storage compound for Facilities By ADF, a vehicle hire company that services the TV and film industries.
Newcore has now sold the entire site, which also includes a 6-acre anaerobic digester leased to Severn Trent Green Power, on behalf of its Newcore Strategic Situations IV (NSS IV) fund for £22.1m.
The sale was completed through two separate transactions.
IPE Real Assets understands that the buyers were a family office investor and an owner-occupier business.
Newcore said the Longcross asset is the largest of six IOS properties in Greater London and M25 locations that NSS IV acquired between 2018 and 2021. All six sites have now been sold for £57m.
NSS IV remains on track for full liquidation by August 2026, the manager added.
Hugo Llewelyn, CEO, Newcore Capital, said: “NSS IV fund was launched prior to the challenging shifts in interest rates and rising cost of capital in 2022, which negatively impacted the position of many other UK value-add funds. Against this backdrop, we are pleased to share news like today’s announcement, which demonstrates the resilience of Newcore’s strategy.
“NSS IV fund continues to be liquidated within the agreed timeframe and at a premium to NAV, based on external valuations. We are pleased to return both capital and profits to our investors, with a targeted final exit by August 2026.”
Harry Savory, CIO, Newcore Capital, said: “Industrial open storage continues to represent an attractive sector due to the limited supply of suitable sites.
“This scarcity supports rental growth and enhances the value of existing assets. With the Longcross site, our successful asset management initiatives have wedded with these sectoral tailwinds to deliver strong returns for our investors.”
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