Newcore Capital, the UK-based social infrastructure investment manager, has sold two industrial open storage (IOS) sites in Greater London for a combined €25.8m to corporate owner-occupiers. The disposals were executed on behalf of its value-add vehicle, Newcore Strategic Situations IV (NSS IV), and underline the scarcity-driven value growth in strategically positioned IOS assets near the capital.
The first asset, a 46,333 m² (11.45-acre) site in Ickenham, was acquired in August 2021 as a disused R&D facility. Following a value-add strategy involving a redevelopment and planning consent granted in September 2024, the site was transformed into four IOS yards with supporting office use. It was then sold for €11.7m to a machinery hire business. The second, an existing 32,375 m² (8-acre) IOS site in Harefield, was sold for €14.1m after a successful leasing strategy and planning optimisation that included securing a 31% rental uplift and a decade-long planning consent for IOS use.
These transactions have significantly contributed to the fund's performance, with NSS IV having now realised €53.4m in asset sales, achieving a gross levered IRR of 21.9% and a 1.83x gross equity multiple. Both sales reflect the increasing demand from industrial occupiers for long-term control of scarce IOS land amid ongoing pressure from residential development and planning constraints in the Greater London area.
“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,” said Hugo Llewelyn, CEO of Newcore Capital. “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.”
Harry Savory, CIO of Newcore Capital, added: “Industrial open storage’s appeal lies in an under-supply of available sites, supporting rental growth, as suitable land is often reallocated to residential and other uses. This is especially true of the Greater London area, which is of strategic importance to businesses related to the manufacturing and construction sectors.”
With the €221.3m NSS V fund fully deployed and the launch of the Newcore Social Infrastructure Fund (NSIIF) – a new €439.3m core-plus vehicle – Newcore Capital continues to scale its footprint in the social infrastructure sector. The firm now manages €820m across both strategies and remains the UK’s highest-ranking B Corporation in real assets, with a continued commitment to return at least 10% of its profits to charity.
People mentioned:
Hugo Llewelyn, CEO, Newcore Capital
Harry Savory, CIO, Newcore Capital
Companies mentioned:
Newcore Capital – Investment manager, seller
Lambert Smith Hampton – Advisor
Image: Hugo Llewelyn, CEO, Newcore Capital (credit: Newcore Capital)
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