Newcore Capital, a UK investment manager specialising in social infrastructure real estate, has announced the sale of an industrial open storage (IOS) asset in Longcross, Surrey, for over £22 million.
The 20-acre site was purchased in 2018 for a gross price of £6.4m. Newcore undertook a £8.8m development project to create a seven-acre open storage compound for Facilities By ADF.
The entire site, which includes a six-acre anaerobic digester leased to Severn Trent Green Power, has now been sold via two separate transactions for a total price of £22.1m.
The asset in Longcross is the largest of six industrial open storage sites located in Greater London or M25 locations purchased by Newcore for NSS IV between 2018 and 2021.
All of these sites, which total 43 acres, have now been sold for an aggregate price of £57m delivering a blended property-level ungeared internal rate of return (IRR) of 16.8% per annum.
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Newcore Capital’s CEO, Hugo Llewelyn, said: “NSS IV was fund launched prior to the challenging shifts in interest rates and rising cost of capital in 2022, which negatively impacted the position of many other UK value-add funds.
“Against this backdrop, we are pleased to share news like today’s announcement, which demonstrates the resilience of Newcore’s strategy.
“NSS IV fund continues to be liquidated within the agreed timeframe and at a premium to NAV, based on external valuations. We are pleased to return both capital and profits to our investors, with a targeted final exit by August 2026.”
Newcore Capital was advised by LSH and JG Poole & Co in respect of the sale of Kitsmead Tech Park, Longcross.
