Newcore Capital has sold two industrial open storage (IOS) assets in Greater London for £22m.
The disposals were made on behalf of Newcore Strategic Situations IV (NSS IV), the fourth fund in its value-add series.
Newcore has sold a 11.45-acre asset in Ickenham, which it acquired in 2021, for £10m to an owner-occupier industrial plant and machinery hire business.
It has also sold an 8-acre asset in Harefield (pictured) for £12m to another owner-occupier. Newcore acquired the site in February 2021 as an IOS facility and subsequently pursued a leasing strategy to drive rental income at upcoming rent reviews and a planning strategy to formalise the site’s planning position.
The firm successfully secured a 31% rental uplift and was granted planning permission for more than 10 years of IOS use in August 2024.
Hugo Llewelyn, CEO of Newcore Capital, said: “These disposals adhere to our value-add strategy of investing in assets that can be repurposed to enable societally critical services that require the use of physical space and are thus resilient to the deflationary effects of technological change. We are now in the process of returning capital and profits to our fund IV investors and remain well-on-track to deliver a strong risk-adjusted result, notwithstanding the seismic changes in the capital markets midway through the life of the fund.”
Harry Savory, CIO of Newcore Capital, added: “Industrial open storage’s appeal lies in an under-supply of available sites, supporting rental growth, as suitable land is often reallocated to residential and other uses, which limits new development prospects and enhances the attractiveness of existing assets. This is especially true of the Greater London area, which is of strategic importance to businesses related to the manufacturing and construction sectors servicing clients with activities in the capital.”
Newcore was advised by Lambert Smith Hampton.
