Alternative real estate investment manager Newcore Capital Management has announced the launch of a £100 mln (€113 mln) value-add fund focused on UK real estate assets linked to social infrastructure, storage and accommodation.
Newcore Strategic Situations IV has secured equity commitments of £55 mln at the first close from two UK local authority pension funds, including Merseyside Pension Fund, as well as its existing family office client base. A final close is expected to take place in the first quarter of 2019.
The fund, which will aim to deliver an annual 14-16% net internal rate of return to investors, will focus on assets which require repositioning, regeneration or refurbishment to restore them to institutional quality.
The vehicle continues the value-add strategy which Newcore has executed since 2012 and follows the completion of the £40 mln investment programme for its Newcore Strategic Situations III.
Hugo Llewelyn, 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.'
Newcore is being advised by CBRE Capital Advisors in the fundraising.
