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Newcore wins Property Fund Manager of the Year Award 2021

Newcore wins Property Fund Manager of the Year Award 2021

Newcore Capital Management, the B Corporation-certified, social infrastructure investment manager, is delighted to announce that it won the coveted Property Fund Manager of the Year award at this year’s UK Property Industry Awards.

Newcore’s COO, Neil Sarkhel and its CIO, Harry Savory were presented with the award, which was sponsored by Yardi, at the InterContinental London, The O2, on 12 November 2021. The Property Awards, in its 26th year, is the property industry’s largest awards ceremony, recognising and rewarding the very best companies, teams and individuals.

Newcore was chosen by a panel of judges from a shortlist of nine other fund managers, which included Hines, Legal & General Investment Management Real Assets, Patron Capital and M7 Real Estate, for its performance and quality of its work in 2020/21, which included:

  • succeeding at first attempt to become a B Corporation, the first dedicated UK real estate investment manager to become accredited by this external ethical business movement
  • strong and sustainable continuing financial performance of its funds over the year which allowed Newcore to raise substantial new discretionary capital
  • demonstrating a clear and measurable ESG strategy, particularly in relation to social impact – for example through its partnership with LandAid and the wider industry to create the Probono Programme.

Hugo Llewelyn, CEO of Newcore, said: “We are absolutely delighted to have won the 2021 Property Fund Manager of the Year Award at this year’s UK industry awards. Since Newcore began, a decade ago, we have tried hard to create a credible platform and positive business culture through which to deliver sustainable and attractive returns for our clients, balancing the objectives of all stakeholders in our business. This award recognises our progress to date and we look forward to building on this further over the decades to come”.

Newcore publishes 2022 Impact Report

Newcore publishes 2022 Impact Report

Since Newcore launched over a decade ago, we have tried to run our capital management business in a different way to the mainstream. We believed, even back then, that the “pre-2008” model of capital management – that led to the financial crisis and which was a prelude to current day economic market conditions – was not a sustainable one. 

Our 2021/22 Impact Report explains how we try to do this. 

Newcore’s mission is simply to deliver strong returns from sustainable investment in social infrastructure. 

We are driven by a belief that strong and sustainable risk-adjusted returns are best achieved on a long-term basis when you adhere to a rigorous governance framework and incorporate community and environmental considerations into business plans – both at fund and management platform level. That ethos has helped us to deliver 17%+ p.a. aggregate IRR on AUM since inception (with modest financial leverage) and we were the first dedicated UK real estate investment manager to certify as a B Corporation.  For Newcore, the past 12 months have resulted in the formal integration of our social and environmental objectives and the launch of our latest UK social infrastructure fund, NSS V LP.  In 2022, we’ve updated our brand, clarified our mission and launched a new website. We’ve also published our latest Impact Report where we reflect on what we’ve done, not managed to do; and what we want to do in the future. 

Newcore launches £300m UK social infrastructure fund

Newcore launches £300m UK social infrastructure fund

Newcore Capital Management, the UK social infrastructure real estate investment manager, today announces the launch of Newcore Strategic Situations V LP, a £300 million value-add fund for institutional and family office investors that will invest in UK real estate assets linked to social infrastructure.

At the soft first close of the fund, Newcore has secured institutional and family office commitments from its existing investor base, giving it an initial £60 million of investment firepower. Newcore is now widening the marketing to the institutional investor market and expects further closes during 2022.

NSS V LP has voluntarily elected to shadow Article 9 under the EU Sustainable Finance Disclosure Regulation (SFDR), the highest green rating of positive impact that an alternative investment fund manager can achieve. The fund will voluntarily elect under the social impact route. This accords with Newcore’s strategy of delivering additional and much-needed essential services real estate to the UK market, while mitigating carbon dioxide emissions and utilities waste, within its B Corporation governance framework.

The fund, which is closed ended with a seven-year life, will aim to deliver an annual 13-15% net internal rate of return to investors, using sustainable leverage of up to 30% on a loan-to-value basis. Newcore will focus on investing in assets that deliver essential services to society, which require repositioning, modernising or refurbishment to bring them up to institutional and future-proof quality.

These assets linked to social infrastructure, such as education, healthcare, transport, waste management, retirement living, life sciences and environmental infrastructure, are often considered “alternative” by mainstream institutional investors and, therefore, the province of specialist managers. Newcore has invested only in these sectors since its formation in 2011, delivering annualised returns of more than 17% to its investors over that period, while capturing and measuring significant positive social impact from its strategies.

NSS V LP continues the value-add strategy which Newcore has successfully executed since 2012 and follows the completion of the £150 million investment programme for its NSS IV LP fund. NSS IV delivered 28% year-on-year total returns in 2021, notwithstanding Covid and wider market disruption.

In 2019, Newcore became the first dedicated UK real estate investment manager to be certified as a B Corporation, joining a growing group of companies reinventing business by explicitly committing to pursue purpose as well as profit. As part of the certification, Newcore commits to donating at least 10% of its profit each year to its charitable foundation.

Hugo Llewelyn, chief executive of Newcore, said: “We are pleased by the initial level of institutional and family office investor interest for this, our fifth fund, reflecting our specialist, value-add strategy and the success of our first four funds. We are particularly pleased that the fund measures up to the requirements of Article 9 of the EU SFDR and will be categorised as such in positive impact terms”.

Newcore Capital hires Kate Sandle as Director of Sustainability

Newcore Capital hires Kate Sandle as Director of Sustainability

Newcore Capital, the UK real estate investment manager specialising in social infrastructure, has hired climate and sustainability expert, Kate Sandle into its senior management team as Director of Sustainability. Newcore is a Certified B Corp and invests in assets that are essentially to society.

Before joining Newcore, Kate worked for more than six years at B Lab, the non-profit network responsible for rolling out the B Corporation movement in the UK, latterly as director of programmes and engagement. In 2020, Newcore became the first dedicated UK social infrastructure or real estate investment manager to certify as a B Corporation.

Reporting to chief operating officer, Neil Sarkhel, Kate will focus on helping Newcore manage and build on its ESG credentials, including: 

  • Co-ordinating the sustainable approach of its latest fund (Newcore Strategic Situations V LP) which aims to deliver significant positive social impact as well as attractive risk-adjusted financial returns
  • Co-ordinating Newcore’s approach and reporting on environmental impact to external industry bodies such as GRESB and the measurement of the positive social impact generated by its fund strategies
  • Working on Newcore’s and its funds’ pathway to net zero CO2 emissions
  • Advising on and implementing improvements to the business to allow Newcore to increase its current B Corporation score from 113 at its next review
  • Generally promoting Newcore’s sustainable capital management approach to the fund management and real estate industries in which Newcore is involved

Hugo Llewelyn, CEO of Newcore, said: “We are delighted that Kate has joined as a senior member of our team, as we continue to build on our decade-long track record as a sustainable capital management business and B Corporation. Kate’s knowledge and experience in ESG and sustainability, based on her tenure as B Lab’s UK lead, is invaluable to us as we develop and deliver genuine positive impact though our funds and our own management platform”.

The B Corp Certification

The B Corp certification addresses the entirety of a business’ operations and covers five key impact areas of Governance, Workers, Community, Environment and Customers. The certification process is rigorous, with applicants required to reach a benchmark score of over 80 while providing evidence of socially and environmentally responsible practices relating to energy supplies, waste and water use, worker compensation, diversity and corporate transparency. To complete the certification, the company will legally embed their commitment to purpose beyond profit in their company articles.

About B Lab UK:

B Lab UK is transforming the economy to benefit all people, communities, and the planet. A leader in economic systems change, our global network creates standards, policies, and tools for business, and we certify companies—known as B Corps—who are leading the way. To date, our global community includes 4,900 B Corps in 78 countries and 153 industries, and over 150,000 companies manage their impact with the B Impact Assessment and the SDG Action Manager.

Newcore secures £90 million of senior debt facilities

Newcore secures £90 million of senior debt facilities

Newcore Capital, the UK social infrastructure real estate investment manager, has secured £90 million of senior debt facilities for three of its funds and a separate account.

The four transactions comprise:

  • a new £40 million facility from OakNorth Bank for Newcore Strategic Situations V LP, a £300 million value-add, social infrastructure fund which held a first close in December 2021; the fund has a target loan-to-value ratio of 30% when fully invested
  • a £32.6 million refinancing and increase of a £22 million senior facility arranged by Rothschild & Co for Newcore Strategic Situations IV LP, its £150 million value-add fund; the fund is fully invested and the proceeds will be used for capital expenditure on assets
  • a refinancing of an £11 million senior facility from Lloyds Bank for Newcombe Estates, a UK family office property company, established in 1905, which is managed by Newcore 
  • a refinancing of a £6.2 million senior facility from NatWest for Newcore Strategic Situations III LP

Neil Sarkhel, chief operating officer of Newcore, said: “The four debt transactions demonstrate the good appetite from lenders for the core product that Newcore creates. Newcore’s B Corp status was also a positive factor in the discussions we had with lenders”.

Newcore secures planning consent for 105,000 sq ft Life Sciences Campus

Newcore secures planning consent for 105,000 sq ft Life Sciences Campus

Newcore Capital Management, the social infrastructure investment manager, has secured planning consent for the development of a 105,000 sq ft life sciences centre adjacent to Imperial College London’s campus at Ascot on the edge of London.

The consent from the Royal Borough of Windsor & Maidenhead is for the repurposing and redevelopment of Silwood Science Park adjacent to Imperial College London’s Science and Technology Campus in Buckhurst Road. Designed by Sheppard Robson, the project includes the demolition of the existing business centre and construction of a new 56,000 sq ft life science centre, the refurbishment and retrofitting of five existing laboratory buildings, totalling 48,000 sq ft, and a 2,000 sq ft café pavilion and landscaping.

In line with Newcore’s commitment as a B Corporation to meet high standards of social and environmental performance, accountability and transparency, the development has sustainability at its heart. Through passive design, energy efficiency measures and the implementation of low and zero carbon technologies, together with a carbon offset contribution, the development will achieve a 100% site-wide reduction in carbon emissions, once built.

The consent is supported by Imperial College London, with the development integral to its growth plans at Silwood Park. Its campus, which is celebrating its 75th anniversary this year, is a world-leading hub for conservation, ecological and evolutionary research with unique lab-field eco-test facilities.

Silwood Science Park is an asset in Newcore’s £150 million value-add fund, Newcore Strategic Situations IV LP. Newcore was advised by Savills in the planning process and by Hoare Lea, Gardiner & Theobald and Ramboll.

Harry Savory, CIO of Newcore, said: “We are pleased to have secured this important planning consent in partnership with Imperial and the local authority. Life sciences, particularly those linked to solving societal issues around healthcare and the environment, are essential to UK society and, hence, a core part of our strategy. We currently have other assets in the planning and development process in London, Oxford and Bristol and are keen to add to this portfolio”.

The continuing case for social infrastructure

The continuing case for social infrastructure

Click here to read the continuing case for UK social infrastructure, in light of current market conditions

Newcore Capital becomes UK’s first social infrastructure investment manager to certify as a B Corporation

Newcore Capital becomes UK’s first social infrastructure investment manager to certify as a B Corporation

Newcore Capital, the UK social infrastructure investment manager, announces today its certification as a B Corporation (or B Corp), joining a growing group of companies reinventing business by explicitly committing to pursue purpose as well as profit.

Newcore is one of a handful of fund managers globally and the only dedicated social infrastructure specialist in the UK to have been awarded this accreditation. Newcore has been certified by B Lab, the not-for-profit organisation behind the B Corp movement, as having met rigorous social and environmental standards which represent its commitment to goals ranking as more important than shareholder profit. 

The B Corp certification addresses the entirety of a business’s operations and covers five key impact areas of Governance, Workers, Community, Environment and Customers. The certification process is rigorous, with applicants required to exceed B Corp’s ESG (Environmental, Social and Corporate Governance) benchmark, while providing clear evidence of socially and environmentally responsible practices relating to energy supplies, waste and water use, worker compensation, diversity and corporate transparency. To complete the certification, the company will legally embed this commitment to purpose beyond profit in its LLP deed and also commit to give, through its foundation, at least 10% of its profits each year to charities linked to the social infrastructure sectors in which it is involved, which include education, healthcare and environmental science.

Newcore is now part of a community of more than 3,400 businesses globally which have certified as B Corps. The B Corp community in the UK, representing a broad cross section of industries and sizes, comprises more than 330 companies and includes well-known brands such as The Guardian, innocent, Patagonia, The Body Shop, and organic food pioneer, Abel & Cole.

Newcore has become the first dedicated UK social infrastructure or real estate investment manager to certify as a B Corp. The only other two certified UK real estate companies are Igloo and Joseph Homes, while Bridges Fund Management, which is a fund manager that focuses on sustainable and impact investing, including real estate, is also certified.  

Kate Sandle, Director of Programmes and Engagement, at B Lab UK, said: “We are delighted to welcome Newcore to the B Corp community. This is a movement of companies who are committed to changing how business operates, who believe business really can be a force for good. We know that Newcore is are going to be a fantastic addition to the community and will continue driving the conversation about ethical business forward. 

“Being able to welcome Newcore to the B Corp community is hugely exciting: its commitment to doing business differently will be an inspiration to others and will really help spread the idea that we can redefine success in business to be as much about people and planet as it is about profit”. 

Hugo Llewelyn, CEO of Newcore, said: “We are very pleased to have become a B Corp business. B Corp’s framework, for how businesses should operate, fits in with the ethos that has been embedded within Newcore and the funds that it manages since it was founded a decade ago. The recognised third-party ESG accreditation will also be incredibly beneficial, as an endorsement across all our business conversations, involving talent management, fund raising and deployment of our capital, and in our dealings with the public and private sector.

“We are firmly of the view that this will assist the sustainable growth of the Newcore business over the next decade and beyond. We hope that many more fund managers and property companies will follow this route during that time”.

Newcore’s 2020 Impact Report

Newcore’s 2020 Impact Report

Click here to read Newcore’s 2020 Impact Report

Newcore wins alternatives team of the year 2019

Newcore wins alternatives team of the year 2019

Newcore Capital Management is delighted to announce that it has won the coveted Alternatives Team of the Year award at the 2019 Property Awards.

Newcore’s managing director, Hugo Llewelyn, was presented with the award, which was sponsored by NovaLoca, in front of more than 1,200 people at the Grosvenor House Hotel on 24 April. The Property Awards, in its 24th year, is the property industry’s largest awards ceremony, recognising and rewarding the very best companies, teams and individuals.

Newcore was chosen by a panel of judges for the quality of its work in 2018, which included:

  • Delivering outstanding performance from its three existing funds and longstanding family office, Newcombe Estates
  • Launching its fourth fund, the £100m NSS IV LP, the first institutional real estate fund to focus on social infrastructure, accommodation and storage assets
  • Securing a third family office mandate, Apperley Properties Ltd
  • Expanding the size of the team by a third to 12
  • Carrying out a number of charitable regeneration initiatives, which included providing pro bono development advice in one of the UK’s most deprived estates, Blackbird Leys in Oxford

Hugo Llewelyn, Managing Director of Newcore, said: “’We are really pleased to have won such an important award and very grateful for the recognition we have received here. When I set up the company in 2011, I was convinced that focusing on “new core” alternative asset classes linked to social infrastructure, accommodation and storage was a rational investment strategy. This award recognises the hard work and ability of our team, as well as the deep support of our investors and clients”.