Newcore Capital has sold an industrial open storage (IOS) asset in Longcross, Surrey, for £22.1m via two separate transactions.
The 20-acre site was purchased in 2018 for £6.4m and Newcore undertook a £8.8m development project to create a 7-acre open storage compound for Facilities By ADF, a specialist vehicle hire business for TV and film productions. The site also includes a 6-acre anaerobic digester leased to Severn Trent Green Power.
The disposal was made on behalf of Newcore Strategic Situations IV (NSS IV), the fourth fund in its value-add investment series.
Hugo Llewelyn, CEO of Newcore Capital, said: “NSS IV was fund launched prior to the challenging shifts in interest rates and rising cost of capital in 2022, which negatively impacted the position of many other UK value-add funds. Against this backdrop, we are pleased to share news like today’s announcement, which demonstrates the resilience of Newcore’s strategy.
“NSS IV fund continues to be liquidated within the agreed timeframe and at a premium to NAV, based on external valuations. We are pleased to return both capital and profits to our investors, with a targeted final exit by August 2026.”
Harry Savory, CIO of Newcore Capital, added: “Industrial open storage continues to represent an attractive sector due to the limited supply of suitable sites. This scarcity supports rental growth and enhances the value of existing assets. With the Longcross site, our successful asset management initiatives have wedded with these sectoral tailwinds to deliver strong returns for our investors.”
Newcore was advised by LSH and JG Poole & Co.
