Newcore Capital buys nurseries for £25m

Newcore Capital Management has bought several children’s nurseries in London for £25m, as part of an £80m investment push in the education sector. The social infrastructure investment manager bought the properties on behalf of a new £150m value-add fund for institutional and family office investors, from a mix of private and public sector vendors. The deals completed over the past few weeks. The nurseries, which now sit in Newcore Strategic Situations IV LP, are located in Streatham, Brixton, West Norwood, Bromley, Orpington and Twickenham.  Some of the properties are already children’s nurseries, while others will be refurbished and converted into nurseries.  These are either let or prelet to operators including Busy Bees, Bright Horizons, N Family Club and Monkey Puzzle, which are all existing operating partners of Newcore. Hugo Llewelyn, managing director of Newcore, said: “Asset-backed investments and property linked to education are key targets for Newcore. We are keen to acquire children’s nurseries as well as assets through the primary, secondary and tertiary system.  “We like to buy vacant or short-leased assets with a view to refurbishment or redevelopment in good towns in London and the South East. We will also buy asset-backed operating businesses. Our aim is to invest a further £80m in the sector in the next 12-18 months.” The new value-add fund follows the completion of the £40m investment programme for its Newcore Strategic Situations III LP fund. The fund will aim to deliver an annual 14-16% net internal rate of return to investors.  In the past three years, the investment manager has refurbished and delivered more than 1,000 childcare sites in London and the South East. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette