Newcore Capital Management LLP, a real estate investment manager specializing in accommodation, social-infrastructure and other assets in the United Kingdom, is entering the self-storage sector. The company intends to commit an initial £10 million from its £100 million Newcore Strategic Situations IV fund to amass a portfolio of freehold properties primarily in Southeast England. It expects to invest a total of £25 million during the next 18 months to acquire or develop up to five facilities, according to a source.
Other England markets being considered are Bath and Bristol. Development will be managed by Engage Management Services Ltd., a third-party self-storage management firm that will operate the locations when complete. The name of the operating brand hasn’t been determined, a source reported.
“We believe this is an opportune time to invest in the self-storage sector for our five-year investment horizon,” said Hugo Llewelyn, managing director of Newcore. “The U.K. is still undersupplied in self-storage in the major urban conurbations, and there is little new supply coming onto the market. The sector has also proved resilient through the downturn.”
Newcore manages capital in real estate on behalf of family-office, institutional and private clients through funds and separate accounts. It has £210 million of assets under management.
Founded in 2009, Engage offers self-storage consulting, management and marketing services to investors and operators. It manages 11 U.K. storage facilities comprising 326,000 square feet.
Sources:
IPE Real Assets, Newcore Enters Self-Storage Sector Through Engage Partnership
Property Funds World, Newcore Capital Launches GBP25 Million Self-Storage Venture