Social infrastructure specialist Newcore Capital has secured a £40m debt facility from HSBC UK, with an additional £40m accordion facility also available.
The debt facility comprises a £20m senior loan facility and a £20m revolving credit facility.
The new financing will support acquisitions for Newcore’s fifth value-add fund, Newcore Special Situations V, which closed in May last year with £190m in equity commitments. The fund is targeting assets in the education, healthcare, waste management, EV charging and storage sectors.
Neil Sarkhel (pictured), COO of Newcore Capital, said: “The HSBC UK facility highlights that mainstream lenders are increasingly comfortable with social infrastructure as an asset class. The funding from HSBC, combined with the equity raised last year, provides us with significant firepower to deploy into creating functional assets that enable the provision of services critical to the dignified and orderly running of UK society.”
Hugo Llewelyn, CEO, Newcore Capital, added: “Our three-dimensional and long-term approach to sustainability – integrating social, environmental and financial considerations into our overall framework – has seen us adopt a low levered approach across our flagship value-add fund series. This has served our investors, tenants and underlying service users well through recent volatile times; and we believe that the strategy is likely to deliver stronger, long-term, risk-adjusted returns than tactical high-leverage strategies.
Richard Holland, senior relationship director, real estate finance at HSBC UK, said: “We are delighted for the opportunity to progress a banking relationship and loan facility with Newcore Capital for their fifth fund, and look forward to seeing both the business and our working relationship grow in the future.”
