Fri, 09/03/2018 - 09:45
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Newcore Capital Management, an alternative real estate investment manager, has completed the GBP40 million investment programme for its Newcore Strategic Situations III LP value-add fund.
Newcore has acquired the final two investments for the fund for a total capital commitment of around GBP5 million. It has purchased the operational business and property at the Winterbrook Nursing Home in Wallingford, Oxfordshire, from a private seller; and a specialist healthcare facility in East Grinstead, West Sussex, in a sale and short-term leaseback with the NHS. The facility has been pre-let to Busy Bees Nurseries, the UK's largest childcare provider.
The acquisition of Winterbrook Nursing Home gives the fund GBP10 million of care home investments in Oxfordshire with 120 beds. These care homes are managed for Newcore by PH Care Management. The acquisition of East Grinstead represents Newcore’s fifth project with Busy Bees and takes its nursery school development programme beyond 500 childcare places within the last two years.
The fund owns a portfolio of assets, linked to social infrastructure, storage and accommodation. Newcore believes these can be repositioned to suit the demands of low-risk institutional investors, after regeneration or refurbishment, delivering returns of 14-16 per cent a year. The towns invested in by the fund are Oxford, Winchester, Kingston-upon-Thames, Tunbridge Wells, Bicester, Wallingford and East Grinstead.
Newcore Strategic Situations III LP, which secured equity commitments from principally family office capital in April 2017, continues the value-add and opportunistic strategy Newcore has successfully executed since 2012. Newcore has just sold two properties in its second fund, Newcore Strategic Situations II LP, which should lead to a return of all capital and profits to investors in the first half of 2018. It is on track to deliver a 40 per cent return since the fund’s close in March 2016.
Hugo Llewelyn, Managing Director of Newcore, says: “The two final deals for NSS III reflect our specialist value-add approach: freehold assets in strong south east towns with opportunities for value creation, by strengthening the income profile through planning, refurbishment and leasing”.