Newcore Capital, the B-Corp, UK-focussed real estate investment manager specialising in social infrastructure, has achieved a first institutional close for the latest fund within its flagship value-add series, Newcore Strategic Situations VI. The close includes equity commitments from a large local government pension scheme (LGPS) pooled fund, a further direct LGPS scheme and a European fund-of-funds manager, with continued support from existing investors and the addition of two new institutional investors as limited partners.
“The first close for NSS VI, welcoming new and existing investors, reflects investor confidence not only in our value-add strategy, but also in our capital management capabilities given what continues to be a highly selective fundraising environment for real estate,” said Newcore Capital COO Tim Thorp.
The closing means that NSS VI has £150m (US$203m) of investment capacity to deploy across opportunities in UK social infrastructure in sectors including healthcare, education, childcare, transport, waste management, energy, and storage. The fund will acquire and improve real estate, through planning, leasing and refurbishment.
“Our strategy aims to solve the shortage of capital available to improve and lease affordably the buildings and land critical for the dignified delivery of UK social infrastructure services,” said Newcore Capital CEO, Hugo Llewelyn. “Our thesis is consistent: if you look after all your stakeholders in the capital management ecosystem in a responsible way, including the communities in which you work and the environment, you will do a lot better in the long-term for your investors and for yourselves. This has never been truer than in the current, volatile, geopolitical times.”
NSS VI is a close-ended vehicle with a fixed life spanning seven years. The fund has an equity hard cap of £300m, targeting final close by Q2 2027, and aims to deliver a net levered IRR to investors of 12-14% per annum, with a maximum leverage of 40% LTV.
