Newcore Capital (‘Newcore’), a UK investment manager specialising in social infrastructure real estate, announces the sale of an industrial open storage (IOS) asset in Longcross, Surrey, for over £22 million.
The disposal has been made on behalf of Newcore Strategic Situations IV (NSS IV), the fourth fund in the manager’s value-add investment series.
The 20-acre site was purchased in 2018 for a gross price of £6.4m. Newcore undertook an £8.8m development project to create a 7-acre open storage compound for Facilities By ADF, the specialist vehicle hire business for TV and film productions. The entire site, which includes a 6-acre anaerobic digester leased to Severn Trent Green Power, has now been sold via two separate transactions for a total price of £22.1m.
The asset in Longcross is the largest of 6 industrial open storage sites located in Greater London or M25 locations purchased by Newcore for NSS IV between 2018 and 2021. All of these sites, which total 43 acres, have now been sold for an aggregate price of £57m delivering a blended property-level ungeared internal rate of return (IRR) of 16.8% per annum and a levered multiple of 2.1x.
NSS IV remains on track for full liquidation by August 2026, returning capital and profits to investors.
Newcore is currently investing on behalf of its fifth value-add fund, NSS V, which reached a final close at £190m in 2023, with a re-up rate of 60%.
The manager recently launched core-plus vehicle, The Newcore Social Infrastructure Fund (NSIIF), which reached a first close this Spring with £100m of investment capacity. NSIIF is targeting £375m in equity commitments. Newcore currently manages approximately £700m across both its value-add and core-plus strategies.
Newcore was advised by LSH (agents) and JG Poole & Co (solicitors) in respect of the sale of Kitsmead Tech Park, Longcross.
Hugo Llewelyn, CEO, Newcore Capital, said: “NSS IV was fund 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 the news of the announcement, which demonstrates the resilience of Newcore’s strategy.
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