Newcore Capital has achieved the first close of its Newcore Social Infrastructure Income Fund (NSIIF), securing €117m (£100m) investment capacity from cornerstone investors, including The Parliamentary Contributory Pension Fund, a Local Government Pension Scheme, and an insurance company client of Capricorn Private Investments.
The core-plus fund targets sustainable long-term income and capital growth by investing in UK real estate assets essential for social infrastructure, including education, childcare, healthcare, transport, and waste management. A pipeline of €352m (£300m) in potential acquisitions has already been identified.
“We are pleased to have achieved first close for NSIIF, securing three note-worthy institutions as cornerstone investors. This milestone has been achieved against the backdrop of a particularly difficult capital-raising market and demonstrates that a clear three-dimensional focus on sustainability – financial, environmental, and social – can deliver positive results for fund managers, by securing commitments from high-quality investors with similar aspirations for their capital,” said Hugo Llewelyn, CEO of Newcore Capital.
NSIIF aims to generate 9%-11% IRR per annum with a 4-5% annual dividend. The semi-open-ended fund follows a sustainable investment strategy by repurposing under-utilised vacant spaces, refurbishing existing assets, and supporting operators to expand social infrastructure provisions.
Since its inception in 2011, Newcore Capital has achieved 9.4% p.a. IRR across all assets, managing €705m (£600m) in core-plus and value-add strategies. It remains the highest-ranking B-Corp certified real assets fund manager globally.
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