9 March 2020
Newcore Capital Management, the social infrastructure investment manager, has acquired £25 million of children’s nurseries in London as part of an £80 million investment push in the education sector.
The properties, which have been acquired from a variety of private and public sector vendors for Newcore Strategic Situations IV LP, a new £150 million value-add fund for institutional and family office investors, are located in Streatham, Brixton, West Norwood, Bromley, Orpington and Twickenham.
Some of the properties are already children’s nurseries and some will be refurbished and converted into nurseries. They are either let or pre-let to leading children’s nursery operators, Busy Bees, Bright Horizons, N Family Club and Monkey Puzzle, which are all existing operating partners of Newcore.
Newcore has now refurbished and delivered more than 1,000 childcare places in the capital and south east in the last three years.
Hugo Llewelyn, managing director of Newcore, said: “Asset-backed investments and property linked to education are key targets for Newcore. We are keen to acquire children’s nurseries as well as assets through the primary, secondary and tertiary system.
“We like to buy vacant or short-leased assets with a view to refurbishment or redevelopment in good towns in London and the south east. We will also buy asset-backed operating businesses. Our aim is to invest a further £80 million in the sector in the next 12-18 months”.
Newcore Strategic Situations IV LP, a £150 million value-add fund, continues the value-add strategy which Newcore has successfully executed since 2012 and follows the completion of the £40 million investment programme for its Newcore Strategic Situations III LP fund. The fund will aim to deliver an annual 14-16% net internal rate of return to investors.
Link to: Property Week article
(photo source: N Family Club, Twickenham)