Newcore Capital Management has announced the launch of Newcore Strategic Situations IV LP, a €113.4m (£100m) value-add fund for institutional and family office investors that will invest in UK real estate assets linked to social infrastructure, storage and accommodation. At the first close of the fund, Newcore has secured equity commitments of €62.4m (£55m) 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 will aim to deliver an annual 14-16% net internal rate of return to investors. Newcore will focus on investing in assets that it considers to be central to the continuing needs of society and resilient to the internet’s deflationary effect, which require repositioning, regeneration or refurbishment to restore them to institutional and future-proof quality. These assets in sectors such as education, healthcare, transport and waste management, are often considered alternative by mainstream institutional investors and, therefore, the province of specialist managers like Newcore, which has invested only in these areas since 2011.
Newcore Strategic Situations IV LP continues the value-add strategy which Newcore has successfully executed since 2012 and follows the completion of the €45.4m (£40m) investment programme for its Newcore Strategic Situations III LP fund.
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”.
