Newcore Capital Management has sold a social infrastructure building in Sutton, south London, to clients of Finn & Co for €13m (£11.1m), reflecting a net initial yield 5.7%. Copthall House, located on Grove Road in the town centre, is a 39,238ft² building providing clinical healthcare and judiciary services. The sale follows the completion of an extensive asset management programme carried out by Newcore, after it acquired the building in 2016 for €6.9m (£5.9m) for its second value-add fund. The asset management initiatives involved Newcore agreeing a lease regear to HM Courts & Tribunals Service, letting the Sutton Dialysis Unit to Epsom and St Helier University Hospitals NHS Trust and securing planning consent for 32 residential units in a vacant wing.
Harry Savory, chief investment officer of Newcore, said: “We have completed the business plan on this asset, having leased 77% of the floorspace to undoubted tenants providing needs-based services – the NHS delivering renal dialysis and the government with a family court and tribunal centre. We are very much on the look out for further purchases with asset management angles, as we commence the strategy for our fifth value-add fund”.