Newcore sells duo of Greater London industrial open storage assets

• UK social infrastructure specialist has sold two industrial open storage assets in Ickenham and Harefield to two corporate owner occupiers 
• Disposals have been made on behalf of Newcore Strategic Situations IV (NSS IV), the fourth fund in the manager’s value-add investment series 
• To date, NSS IV has realised £45.5m of assets (net sales receipts) with a total gross levered IRR of 21.9% (1.83x gross levered equity multiple) 

Newcore Capital (‘Newcore’), today announces the sale of two industrial open storage (IOS) assets in Greater London for a total of £22m. The disposals have been made on behalf of Newcore Strategic Situations IV (NSS IV), the fourth fund in the manager’s value-add investment series.  

One of the sales comprises a 11.45-acre asset in Ickenham, which Newcore has sold for £10m after having initially acquired the site in August 2021. At time of initial acquisition, the site represented a disused former R&D facility. Newcore subsequently pursued a planning strategy to initiate redevelopment to four new self-contained separate IOS yards and the conversion of an existing building into office space to support IOS use, with consent from the Greater London Authority granted in September 2024.  A sale was then completed to an owner-occupier industrial plant and machinery hire business.

The other disposal comprises an 8-acre asset in Harefield, which Newcore has sold for £12m after having initially acquired the site in February 2021 as an existing IOS facility. Newcore subsequently pursued a leasing strategy to drive rental income at upcoming rent reviews and a planning strategy to formalise the site’s planning position.  The firm successfully secured a 31% rental uplift, and was granted planning permission for over 10 years of IOS use in August 2024, culminating in the sale of the asset to another owner-occupier.

NSS IV, forming part of Newcore’s value-add fund series, is fully committed having reached a final close in 2019 at £100m. To date, NSS IV has realised £45.5m of assets (net sales receipts) with a total gross levered IRR of 21.9% (1.83x gross levered equity multiple). 

Hugo Llewelyn, CEO, Newcore Capital, said:

“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. 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, notwithstanding the seismic changes in the capital markets midway through the life of the fund.”

Harry Savory, CIO, Newcore Capital, said:

“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, which limits new development prospects and enhances the attractiveness of existing assets. This is especially true of the Greater London area, which is of strategic importance to businesses related to the manufacturing and construction sectors servicing clients with activities in the capital.” 

Newcore is currently investing on behalf of its fifth value-add fund, NSS V, which reached a final close at £190m in 2023, with a re-up rate of 60%.  

The manager recently launched core-plus vehicle, The Newcore Social Infrastructure Fund (NSIIF), which reached a first close this Spring with £100m of investment capacity. NSIIF is targeting £375m in equity commitments. 

Newcore currently manages approximately £700m across both its value-add and core-plus strategies.