Two UK schemes have backed Newcore Capital Management’s fourth social infrastructure, storage and accommodation fund to raise 55% of its £100m (€113.8m) target.
Newcore said the value-add Newcore Strategic Situations IV 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 is expected to take place in the first quarter of 2019.
The fund will aim to deliver an annual 14% to 16% net internal rate of return to investors.
Newcore will focus on investing in assets that it considers to be central to the continuing needs of society and resilient to the internet’s deflationary effect, the manager said.
Newcore Strategic Situations IV continues the value-add strategy which Newcore has successfully executed since 2012 and follows the completion of the £40m investment programme for its Newcore Strategic Situations III fund.
Hugo Llewelyn, the managing director of Newcore, said: “We are delighted by the level of institutional investor interest and support in our fourth fund, which reflects our specialist, value-add strategy and the success of our first three funds.
“The fund has got off to a good start with a strong pipeline of attractive opportunities.”