Newcore Capital is venturing into the UK doctor surgery market with a £100 mln investment target over the next two years.
The specialist real estate fund manager has acquired a purpose-built healthcare facility in Headcorn, Kent. Headcorn Surgery encompasses 7,696 square feet is 80% leased to a General Practitioner partnership, while the remaining 20% is rented out to pharmacy Freshname. Additionally, the premises feature 646 square feet of approved extension space.
To further expand its presence in the clinical healthcare sector, Newcore plans to distribute funds among National Strategy Series V and its newly introduced core-plus vehicle, the Newcore Social Infrastructure Income Fund, during 2004 and 2025.
Harry Savory, CIO at Newcore Capital, said: ‘Our purchase of Headcorn Surgery reflects the strong, demographically underpinned demand for primary healthcare facilities in the Southeast. The asset benefits from strong environmental credentials and from its close proximity to Headcorn station, and these factors, combined with its purpose-built nature and consented expansion, will provide further protection against obsolescence.’
Hugo Llewelyn, CEO at Newcore Capital, added: ‘Clinical healthcare has always been an area of focus for us but the opportunity to invest in GP surgeries, particularly those where we can work with doctors to future-proof their assets in line with the NHS 2040 Net Zero commitment, is exciting.’
Newcore has historically invested in various clinical healthcare applications like renal dialysis, pathology, and medical research.
Previously, the GP surgeries sector was largely controlled by specialized healthcare REITS. However, recent financial limitations and falling prices influenced by rising interest rates have rendered the sector more accessible than it has been in over a decade.
Newcore's entry into the clinical healthcare sub-sector reflects the demographic support driving demand, particularly with the aging UK population, along with the inherent stability provided by favorable supply/demand dynamics and consistent revenue streams backed by lengthy lease agreements with operators.
The purchase aligns with Newcore’s strategy to invest in socially impactful real estate assets that exhibit resistance against technological disinflation trends. Additional target areas for Newcore include education, childcare, waste management, and transportation.
