Newcore adds east London Tesco to shopping basket

Newcore Capital has bought a 5.6-acre supermarket investment in Bromley-by-Bow, E3, from British Land for £30m. The site currently comprises a 70,000 sq ft Tesco supermarket, a 558-space car park, and a petrol filling station.  The asset was purchased on behalf of Newcore’s latest value-add vehicle, Newcore Strategic Situations, as there is medium-term scope to unlock value from the site due to its strategic location in a key regeneration area in east London, while benefitting in the shorter term from the income generated by the existing occupier. Harry Savory, chief investment officer at Newcore Capital, said the firm was “actively on the hunt” for similar assets in “strategic locations where there is a medium-term opportunity to enhance value through increased provision of social infrastructure uses”. Chief executive Hugo Llewelyn added: “With the deflationary impact of the internet continuing to disrupt offices and retail, previously the mainstay of institutional investment in real estate, investors are increasingly looking for exposure to asset classes that demonstrate resilience to technological change.  “We see the broad spectrum of social infrastructure as presenting one route for institutional capital seeking sustainable income and capital value growth and the ability to deliver tangible positive impact.” Morgan Williams acted for British Land; Savills advised Newcore.