Newcore Capital (Newcore) has acquired two education assets in Cambridge and Oxford as well as a food distribution asset in Colchester. The assets were acquired for a combined sum of approximately c. €13m, reflecting a net initial yield of 6.1%.
The assets in Cambridge and Oxford are let entirely to Aspect International Language Academy (trading as Kaplan International). There is significant scope to provide additional educational uses, such as special educational needs and childcare, if the tenant ever chooses to vacate.
Harry Savory, CIO, Newcore Capital said: “Owing to their low passing rents and the underlying societal need for the services that they enable, these three properties are expected to perform strongly on a long-term risk-adjusted basis. The properties in Cambridge and Oxford would sustain a wide range of educational uses, including childcare and special educational needs if the current tenant ever chose to vacate. Colchester is an important hub for food distribution – an increasingly important societal trend and therefore sector of interest to Newcore.”
Hugo Llewelyn, CEO, Newcore Capital: “Our purchases are always very conscious of the wider societal shifts taking place in social infrastructure provision across the UK, as increasingly stretched government resources creates significant opportunity for private investment in the sector. They are similarly conscious of minimising risk to the highest extent for us, our tenants, and investors. Market conditions, though bleak overall, have created a fantastic window of opportunity to satisfy this requirement through the availability of social infrastructure real estate entailing resilient demand fundamentals at highly attractive discounts.”
Image provided by Monfort.
