• UK social infrastructure specialist has acquired South Mimms motorway service area, home to the UK’s largest EV Hub
• The asset was acquired for Newcore’s latest value-add fund, Newcore Strategic Situations V (NSS V), which closed in May 2023 with £190m in equity commitments
• Notable investors into the fund include the Merseyside and Clwyd local government pension schemes

UK-focused social infrastructure real estate investment manager Newcore Capital (‘Newcore’) has acquired the investment long leasehold interest in the Welcome Break motorway service area (‘MSA’) at South Mimms, recognised as the UK’s largest EV Hub, for an undisclosed sum.

The 11-acre MSA occupies a key strategic location at the junction between M25 (J23) and A1 (M) that sees over 200,000 daily movements. The site features 70,000 sq ft across the amenity building, restaurants and hotel.

The property is let to Welcome Break until 2036 with passing rent of £1.6m per annum. The rent is structured as a ground rent and is subject to open market review in February 2026.

The asset was purchased on behalf of Newcore’s latest value-add fund, Newcore Strategic Situations V (‘NSS V’), which reached a final close at £190m of equity commitments in May last year and is still in the investment phase. Support for the fund included the Merseyside and Clwyd local government pension schemes. NSS V remains active in the market for MSA as well as other social infrastructure assets, including waste, open storage, healthcare and funeralcare.

Recent acquisitions include a short-leased 5.6-acre Tesco supermarket in the Bromley-by-Bow regeneration area, East London, and an NHS-backed GP surgery in Kent.

Harry Savory, CIO, Newcore Capital, said: “We are delighted to have purchased the service area at South Mimms for NSS V. It is a key strategic holding in UK transport infrastructure; it has a well-established trading position and is virtually unopposed from competition along the northern part of the M25. The site is uniquely positioned to capitalise on the transition towards EV and this will be key to delivering strong future performance”.

On behalf of NSS V, Newcore has also received planning consent for the redevelopment of the former-Royal Mail delivery office in Blackheath as a 120-place children’s nursery and 9 residential apartments in June 2024. The following month, Newcore completed the letting of a 25,000 sq ft school in Milton Keynes to Compass Schools, a national operator in children services, specialising in SEN schools, fostering and residential care.

Hugo Llewelyn, CEO, Newcore Capital, said: “The acquisition of South Mimms MSA follows an active summer for our latest value-add vehicle, with planning consent secured for new childcare provision and residential accommodation, as well as a leasing agreement for a specialist education provider. One of the additional benefits of investing in social infrastructure-related real estate is the positive impact our assets can have, whether that is supporting the decarbonisation of our transport system or providing much needed childcare or educational services.”

• 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.”