Newcore secures £15m from GMPF for North West deployment
The fund has so far been focused on investments in social infrastructure in the South. Now, armed with capital from the Greater Manchester Pension Fund, Newcore plans to make its mark up North.
Newcore Capital has secured a total of £30m of equity investment from the pension fund. Half will be deployed as part of the national Newcore Social Infrastructure Income Fund – A £375m semi-open-ended fund that acquires essential service assets across the UK including nurseries, care homes, storage facilities, and motorway service stations.
The other £15m is ringfenced for these types of investments in the North West specifically.
To date, the fund has made 20 investments including a neighbourhood healthcare centre in Bradford, a 100-place children’s nursery in London, and a waste management asset leased to Biffa, in Norwich.
Hugo Llewelyn, chief executive at Newcore Capital, said: “Securing GMPF, the largest Local Government Pension Scheme, as a client is a huge vote of confidence in Newcore and we are deeply grateful for their trust and partnership.
“Our aim is to work with LGPS and other investors who are interested in deploying capital nationally and into their own regions to deliver both attractive returns [between 9% and 11% a year] and positive impact from the responsible management of social infrastructure.”
Llewelyn added: “The United Kingdom’s physical social infrastructure has faced years of underinvestment, leaving it poorly suited to providing modern services where they are needed most.
“With public finances under pressure, there is a clear role for conscientious private capital to play in modernising existing assets, helping keep pace with societal and environmental goals while delivering consistent financial returns.”
