UK social infrastructure real estate specialist Newcore Capital has acquired a 5.6-acre supermarket site in Bromley-by-Bow, East London, from British Land for £30m.
The site comprises a 70,000 sq ft Tesco supermarket, a 558-space car park and a petrol filling station.
The site was purchased on behalf of Newcore’s latest value-add vehicle Newcore Strategic Situations. Newcore said there was medium-term scope to unlock value from the site due to its strategic location in a key regeneration area in East London.
Harry Savory, CIO of Newcore Capital, said: “We are pleased to have purchased the Tesco Bromley-by-Bow and we are actively on the hunt for further covered land plays in strategic locations where there is a medium-term opportunity to enhance value through increased provision of social infrastructure uses – this is a key criteria for us, alongside the potential for strong risk-adjusted returns.”
Hugo Llewelyn, CEO of Newcore Capital, added: “With the deflationary impact of the internet continuing to disrupt offices and retail, previously the mainstay of institutional investment in real estate, investors are increasingly looking for exposure to asset classes that demonstrate resilience to technological change. We see the broad spectrum of social infrastructure as presenting one route for institutional capital seeking sustainable income and capital value growth and the ability to deliver tangible positive impact.”
Morgan Williams and Osborne Clarke acted for British Land on the transaction. Savills and DWF represented Newcore.
