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

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.