Tag: ESG

Pensions for Purpose x Newcore Capital – Move on from business as usual. This way forward! For B Corp Month 2024.

Pensions for Purpose x Newcore Capital – Move on from business as usual. This way forward! For B Corp Month 2024.

Charlotte O’Leary, Pensions for Purpose CEO, and Kate Sandle, Newcore’s Director of Sustainability, discuss why the investment industry is crucial in creating the future we need.

During the conversation they discuss the history of business, the need for systems change, the importance of being a better business, engaging investors and asset owners, and proposed future legislation that ensures all stakeholder interests are considered.

Watch the full video here.

Newcore completes £30m covered land play with East London acquisition

Newcore completes £30m covered land play with East London acquisition
  • Social infrastructure specialist Newcore Capital has acquired an existing supermarket investment in Bromley-by-Bow, East London, for £30m from British Land;
  • The property comprises a 70,000 sq ft Tesco supermarket, a 558-space car park over 5.6 acres, and a petrol filling station – with approximately 20% site cover;
  • Made on behalf of Newcore’s latest value-add fund, Newcore Strategic Situations V.

Newcore Capital, the UK social infrastructure real estate specialist, has acquired a 5.6-acre supermarket investment in Bromley-by-Bow, East London, from British Land for £30m.

The site, which sits within the London Borough of Tower Hamlets, currently comprises a 70,000 sq ft Tesco supermarket, a 558-space car park, and a petrol filling station.

Morgan Williams and Osborne Clarke acted for British Land on the transaction. Savills and DWF acted for Newcore.

The asset was purchased on behalf of Newcore’s latest value-add vehicle, Newcore Strategic Situations (NSS V), as there is medium term scope to unlock value from the site due to its strategic location in a key regeneration area in East London, while benefitting in the shorter term from the income generated by the existing occupier.

NSS V reached a final close at £190m of equity commitments in May last year and is still in the investment phase. Recent acquisitions include an NHS-backed GP surgery in Kent, two education investments in Oxford and Cambridge, and a food distribution centre in Colchester.

Harry Savory, CIO, Newcore Capital, said: “We are pleased to have purchased the Tesco Bromley-by-Bow and we are actively on the hunt for further covered land plays in strategic locations where there is a medium-term opportunity to enhance value through increased provision of social infrastructure uses – this is a key criteria  for us, alongside the potential for strong risk-adjusted returns”.

In late 2023, Newcore announced the launch of a new core-plus investment vehicle, named The Newcore Social Infrastructure Income Fund, which is targeting £375m in equity commitments. The vehicle – the firm’s largest fund yet – aims to capitalise the strong underlying demand fundamentals for social infrastructure real estate at a time of market dislocation, while its size is indicative of Newcore’s belief in the positive investment outlook for the sector.

Hugo Llewelyn, CEO, Newcore Capital, said: “With the deflationary impact of the internet continuing to disrupt offices and retail, previously the mainstay of institutional investment in real estate, investors are increasingly looking for exposure to asset classes that demonstrate resilience to technological change. We see the broad spectrum of social infrastructure as presenting one route for institutional capital seeking sustainable income and capital value growth and the ability to deliver tangible positive impact.”

ESG & Impact Report 2022-2023 published

ESG & Impact Report 2022-2023 published

Newcore Capital’s latest Impact Report shows ESG-grounded investment strategy delivers ‘consistently strong returns and social value’

  • B Corp certified real estate fund manager finds that three-quarters of the firm’s assets in Funds NSS V and NSS IV generate positive outcomes for people and the planet.
  • Newcore has simultaneously delivered strong returns to investors – 15.3%+ p.a. aggregate IRR on AUM since inception.
  • “Overall, the Fund turns vacant, derelict, or economically unproductive assets into economically and socially productive real estate”, said The Good Economy, social impact advisory firm.

Read the ESG & Impact Report for 2022 / 2023

Newcore Capital (‘Newcore’), the UK-focused social infrastructure real estate investment manager, has published its latest 2022-2023 ESG and Impact Report, which measures the environmental and social impact of its investments over the last year.

Newcore has worked with social impact advisory firm The Good Economy to establish an impact measurement and management framework and written two reports for Newcore Strategic Situations IV (‘NSS IV’) and Newcore Strategic Situations V (‘NSS V’) funds.

The funds’ reports review and highlight the considerable social impact produced by Newcore’s funds. For its NSS V fund, the report finds that three-quarters of the portfolio significantly improved social utility, generating positive outcomes for people and places. It also revealed the substantial impact derived through the firm’s strategy to redevelop derelict or disused sites into socially productive assets; it actively increased the social utility of two-thirds of its assets. Newcore’s contribution to creating impact was deemed medium or high for 72% of the fund.  “Overall, the Fund turns vacant, derelict, or economically unproductive assets into economically and socially productive real estate”, The Good Economy said in its NSS IV report.

There is a similar story for NSS IV, where the Fund actively increased the social utility of two-thirds of its assets, with 68% of the fund having a medium or high contribution to impact. Overall, 72% of the fund generates positive outcomes for people and planet.

Across both funds, Newcore has overseen the creation of 3,570 school places, 2,604 of which are children’s nursery places and 326 of which are special educational needs school places.

It also simultaneously achieved its largest ever capital raise of £190 million in Q1 2023 despite a highly challenging macro-economic environment, showing that its sustainable investment strategy pays dividends. Over its history, Newcore has delivered strong returns to investors – 15.3%+ p.a. aggregate IRR on AUM since inception with modest financial leverage to ensure that balance sheets remain sustainable and stable through market cycles.

Other significant environmental and governance achievements include:

  • Asset level energy data for 95% of assets across NSS IV and NSS V.
  • Introduction of a tenant engagement programme to align sustainability goals and accelerate environmental improvements
  • “Many partners interviewed describe the Fund (NSS V) as an investor of choice and they are keen to work more closely with it.”  The Good Economy, NSS V Impact Report
  • Progress on our commitment to bring nature closer to people and identified key areas for us to focus this year.
  • Newcore’s management platform being operationally carbon neutral for emission scopes 1, 2, and 3
  • Donating at least 10% of Newcore profits per annum to charities supporting social and environmental causes such as The Aldridge Foundation and The Rivers Trust.
  • Being under the UK HMRC tax regime both for management platform and funds (‘on-shoring’)
  • Signing up to the UN Principles of Responsible Investment, following their six key principles and filing regular reports and disclosures on progress.
  • Being the first B Corporation certified dedicated UK real estate investment manager, with the aim to improve the business’s score (currently 38% above the national average).

Newcore Capital Director of Sustainability, Kate Sandle, said: “Our focus on creating and managing sustainable – in all senses of the word – investments has paid dividends, putting us in a strong position for the future.

“Embedding ESG and measuring our impact contributed to us raising capital amidst challenging macro-economic circumstances, delivering consistently strong returns for investors while also generating positive social impact. That said, we recognise more can always be done and we are committed to increasing the supply of social infrastructure and accelerating action to address the climate and biodiversity crisis.”

Newcore Capital wins best ESG firm award from Private Equity Wire

Newcore Capital wins best ESG firm award from Private Equity Wire

ESG

Awards

Newcore Capital Management, the UK social infrastructure real estate investment manager, is pleased to announce that it won the coveted Best ESG Firm – Small Cap award at this year’s Private Equity Wire ESG AAA European Awards.

Newcore’s COO, Neil Sarkhel, and Director of Sustainability, Kate Sandle, were presented with the award at the Kimpton Fitzroy Hotel in London. The awards have been created to benchmark, acknowledge, and reward the efforts of private equity firms that have created sustainable and sector-leading ESG policies at both the portfolio company and management firm level in Europe.

Hugo Llewelyn, CEO of Newcore, said: “We are delighted to have won the Best ESG Firm – Small Cap award. Newcore was founded with the belief that capital managers can provide strong returns for investors and at the same time intentionally create a positive impact for the communities within which it invests and the environment. As a B Corporation, actions to address social, climate and biodiversity challenges are embedded throughout our business, our governance and how we run our funds”.

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’s 2020 Impact Report

Newcore’s 2020 Impact Report

Click here to read Newcore’s 2020 Impact Report