Newcore Special Situations V, a fund that targets UK social infrastructure, has added seven assets in alternative classes, including its first funeralcare property.
Advised by Newcore Capital, the fund has bought all seven assets in Greater London and its surroundings – its strike zone is south east England.
Harry Savory, CIO, said: ’Newcore is always looking for opportunity to invest in assets that provide essential services to society, and we are pleased to include funeralcare in our most recent acquisitions.’
The company is aiming to put £350 mln (€410 mln) to work over two years for Fund V, which closed in May with £190 mln in equity coming from the likes of Merseyside and Clwyd local government pension schemes, two European fund-of-funds managers, insurance and corporate pension schemes, family offices and high-net-worth individuals.
CEO, Hugo Llewelyn, explained: ‘We set up this business to find the next wave of alternative asset classes to emerge as the “new core” – a key pillar in institutional investors’ portfolios – and this has taken us into new sub-sectors like funeralcare and roadside real estate.’
‘Brexit, Covid-19 and the Ukraine War have all led to a focus on resilience – finding investments that will be immune to macro-economic shocks and technological disruption – and we can think of nothing more resilient than assets that enable the provision of basic, essential services to society.’
Two assets are children’s nurseries in Whitton and Clapham, both occupied by Fennies Day Nurseries. The portfolio extends to a further nursery in Walton-on-Thames, Surrey, which Newcore has leased to Outcomes First Group, the UK’s largest independent provider of special educational needs.
The final children’s nursery is occupied by Monkey Puzzle Day Nurseries, and is located in Beaconsfield, Buckinghamshire.
Newcore also acquired two petrol filling stations with electrical vehicle (EV) charging potential in Crouch End and Streatham.
Finally, it acquired its first mortuary - an asset in Surrey that Dignity Funerals currently occupies.
