Sustainable Finance

Newcore Plans to Raise £300m for UK Social Infrastructure Real Estate Fund

Published on: 9 March 2022 08:33 PM
by KnowESG

A Brief Summary

Newcore, a real estate investment manager, said it has plans to raise £300m for a value-add fund. The firm has launched Newcore Strategic Situations (NSS) V. It also has a capital commitment from its existing investor base, around £60m.

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NSS V is designed to target assets linked to education, healthcare, transport, waste management, life sciences, retirement living and environmental infrastructure.

The strategic solution will invest in assets that provide necessary services to society that require repositioning and modernising to bring them up to institutional and future-proof quality.

NSS V, a closed-ended fund with a seven-year existence, will seek to offer an annual net internal rate of return of 13-15 per cent to investors, employing sustainable leverage of up to 30 per cent on a loan-to-value basis, according to Newcore Capital.

Under the EU Sustainable Finance Disclosure Regulation (SFDR), NSS V will be an Article 9 fund, which is the maximum green grade of a positive effect that an alternative investment fund manager may attain.

Hugo Llewelyn, CEO of Newcore Capital Management, said: “We are pleased by the initial level of institutional and family office investor interest for this, our fifth fund, reflecting our specialist, value-add strategy and the success of our first four funds. We are particularly pleased that the fund measures up to the requirements of Article 9 of the EU SFDR and will be categorised as such in positive impact terms.”