Newcore Capital Management has launched Newcore Strategic Situations IV, a £100 million ($132 million) value-add fund for institutional and family office investors that will invest in U.K. real estate assets linked to social infrastructure, storage and accommodation.
At the first close of the fund, Newcore has secured equity commitments of £55 million ($73 million) from two U.K. local authority pension funds, including Merseyside Pension Fund, as well as its existing family office client base. A final close is expected to take place in the first quarter of 2019.
Newcore will focus on investing in assets that it considers to be central to the continuing needs of society and resilient to the Internet’s deflationary effect, which require repositioning, regeneration or refurbishment to restore them to institutional- and future-proof quality. These assets, in sectors such as education, healthcare, transport and waste management, are often considered alternative by mainstream institutional investors and, therefore, the province of specialist managers such as Newcore, which has invested only in these areas since 2011.
Newcore Strategic Situations IV will continue the value-add strategy and will follow the completion of the £40 million ($53 million) investment program for its Newcore Strategic Situations III fund.