Newcore Capital sells £16m of repositioned assets

By Paul Norman - Wednesday, May 16, 2018 11:01

Newcore Capital Management, the alternative real estate investment manager, has sold four mature assets from its funds for a total of £16 million, reflecting a blended net initial yield of 4.4%.

The assets – in Derby, Croydon, Charlton and Chelmsford – are long-income investments which Newcore created through leasing and development strategies. They had an average weighted unexpired lease term of 18.9 years.

The sales were:

• a car park in Siddals Road, Derby, let to National Car Parks until September 2037, to an institutional investor for £5.05 million, reflecting a net initial yield of 4.4%

• the World of Golf Croydon driving range at 175 Long Lane, let to Ashtour until September 2033, to an institutional investor for £4.4 million, reflecting a net initial yield of 4.1%

• a children’s nursery at 176 Charlton Road in Charlton, south east London, let to Busy Bees Nurseries until September 2037, to a private investor for £3.7 million, reflecting a net initial yield of 4.7%

• a children’s nursery at 216 Springfield Road, Chelmsford, let to Busy Bees Nurseries until September 2041, to a private investor for £2.75 million, reflecting a net initial yield of 4.5%

Hugo Llewelyn, Managing Director of Newcore, said: “The pricing demonstrates strong investor demand for social infrastructure, storage and accommodation assets let on long leases with either index-linked or fixed rental uplifts”.

Newcore was advised by JLL in Derby, Knight Frank in Croydon, Carter Jonas and Allsop in Charlton and Allsop in Chelmsford.

pnorman@costar.co.uk

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