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Newcore Capital sells GBP16 million of repositioned assets


Newcore Capital Management has sold four mature assets from its funds for a total of GBP16 million, reflecting a blended net initial yield of 4.4 per cent.

The assets – in Derby, Croydon, Charlton and Chelmsford – are well-let, 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 GBP5.05 million, reflecting a net initial yield of 4.4 per cent; the World of Golf Croydon driving range at 175 Long Lane, let to Ashtour until September 2033, to an institutional investor for GBP4.4 million, reflecting a net initial yield of 4.1 per cent; 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 GBP3.7 million, reflecting a net initial yield of 4.7 per cent; and a children’s nursery at 216 Springfield Road, Chelmsford, let to Busy Bees Nurseries until September 2041, to a private investor for GBP2.75 million, reflecting a net initial yield of 4.5 per cent.
 
Hugo Llewelyn, Managing Director of Newcore, says: “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.

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