Investment manager Newcore Capital Management is seeking to raise £300m for a value-add fund targeting UK real estate linked to social infrastructure.
The manager has launched Newcore Strategic Situations V LP with an initial £60m of firepower from its existing institutional and family office investor base.
Assets will be linked to social infrastructure, such as education, healthcare, transport, waste management, retirement living, life sciences and environmental infrastructure. The focus is on investing in properties that provide essential services to society requiring repositioning, modernising or refurbishment to bring them up to “institutional and future-proof quality”, according to the manager.
NSS V LP – the manager’s fifth fund – will be closed-ended with a seven-year life. It aims to deliver an annual 13-15% net internal rate of return to investors, using sustainable leverage of up to 30% on a loan-to-value basis.
Hugo Llewelyn, chief executive of Newcore, said the fund “measures up to the requirements of Article 9 of the EU Sustainable Finance Disclosure Regulation and will be categorised as such in positive impact terms”. That is the highest green rating of positive impact that an alternative investment fund manager can achieve.
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