Newcore Capital acquires £20 million of educational assets for UK social infrastructure fund

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Article, Report

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October 20, 2022

Newcore Capital Management, the UK social infrastructure real estate investment manager, has acquired a further £20 million of educational assets for Newcore Strategic Situations V LP, its new £300 million value-add, social infrastructure fund.

The acquisition of the seven assets increases the fund’s investments to £43 million. It remains active in the market for educational properties as well as other social infrastructure assets, including healthcare, veterinary, waste, energy and open storage.

The seven assets, all located in Greater London and the southeast, include five early-years education settings now leased to operating partners: Family First in Guildford, Marlow and Finchampstead, Banana Moon in Tunbridge Wells and Fennies in Gerrards Cross. In addition, two special educational needs schools have been acquired: a primary school now leased to Outcomes First Group in Guildford and a school leased to an undisclosed tenant in Walton-on-Thames.

Harry Savory, chief investment officer of Newcore, said: “These seven investments provide good opportunities for our value-add strategy and for extending relationships with excellent operators of educational businesses. We are actively in the market to invest in further assets in the social infrastructure sector”.

Newcore announced the soft first close of Newcore Strategic Situations V LP (NSS V LP) in March, with an initial £60 million of investment firepower and expects a further single closing of the Fund at year end 2020. NSS V LP will shadow Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR), the highest green rating of positive impact that an alternative investment fund manager can achieve. 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.

Newcore publishes 2022 Impact Report

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Report

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August 25, 2022

Click here to read Newcore’s latest 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.