Newcore Capital agrees 215,000 sq ft storage letting

Newcore Capital Management, the B Corporation-accredited, social infrastructure investment manager, has signed a lease agreement with CAD Services for 215,000 sq ft of open storage space at its waste, recycling and storage centre at Longcross, Surrey.

CAD Services, a supplier to the film industry, has agreed a 15-year lease for the five-acre site at a rent of around GBP720,000 a year. The letting is subject to planning consent for a GBP6 million programme of improvements to the site, which is owned by Newcore Strategic Situations IV (NSS IV), a GBP150 million value-add, social infrastructure fund.

The transaction caps a strong 12 months for Newcore and NSS IV, with 35 new lettings completed across the portfolio of educational, healthcare, life science, storage and roadside assets, contributing nearly GBP4 million in additional rent from tenants, such as the NHS, the Ministry of Justice, Welcome Break, Imperial College London, Severn Trent Green Power and N Family Club. 

Newcore has also achieved close to 100 per cent contractual rent collection through this period and material positive underlying capital growth in its portfolios, as investor demand continued to strengthen for social infrastructure assets. 

Harry Savory, chief investment officer of Newcore, says: “We are delighted to have concluded a deal with CAD Services at Longcross, as part of our plan to create long, institutional quality income from this type of social infrastructure investment. 

“We are actively in the market for individual assets of GBP2-30 million either in our existing social infrastructure uses, which require asset or development management in the short to medium term, or more traditional assets, such as offices or shopping centres that can be converted to social infrastructure and housing, delivering rational economic returns. 

“As examples, we have recently converted a former oil storage facility to a 63-bed care home in Cambridge and converted 15 vacant charity, NHS and local government-owned buildings in London into early years education facilities with 1,300 new children’s places.”