Newcore Capital divests two UK industrial assets for €26m

UK social infrastructure investment manager Newcore Capital sold two Greater London industrial open storage properties for a combined £22 mln (€26 mln).

Industrial asset

The sales, from their NSS IV fund, generated a 21.9% return.
One property, a redeveloped 11.45-acre site in Ickenham, which Newcore acquired in 2021, sold for £10 mln (€12 mln).
The other, an 8-acre site in Harefield, also acquired in 2021 and featuring improved leasing and planning permission, sold for £12 mln (€14 mln). Both were sold to corporate owner-occupiers.
Hugo Llewelyn, CEO, Newcore Capital, said: “These disposals adhere to our value-add strategy of investing in assets that can be repurposed to enable societally critical services that require the use of physical space and are thus resilient to the deflationary effects of technological change. We are now in the process of returning capital and profits to our Fund IV investors and remain well on track to deliver a strong risk-adjusted result, notwithstanding the seismic changes in the capital markets midway through the life of the fund."
Harry Savory, CIO, Newcore Capital, added: “Industrial open storage’s appeal lies in an undersupply of available sites, supporting rental growth, as suitable land is often reallocated to residential and other uses, which limits new development prospects and enhances the attractiveness of existing assets. This is especially true of the Greater London area, which is of strategic importance to businesses related to the manufacturing and construction sectors servicing clients with activities in the capital.”
Newcore was advised by Lambert Smith Hampton.
To date, the NSS IV fund has generated £45.5 mln (€54.1 mln) in net sales proceeds, achieving a 21.9% return (or 1.83 times the original investment).
Newcore is currently investing its fifth value-add fund (NSS V), a £190 mln (€226 mln) fund closed in 2023. They also recently launched a core-plus fund (NSIIF) targeting £375 mln (€446 mln), which has already secured £100 mln (€119 mln). In total, Newcore manages about £700 mln (€833 mln) in assets.