Newcore acquires £30m East London supermarket asset from British Land

3rd April 2024 | Jack Oliver

Social infrastructure real estate specialist Newcore has acquired a 5.6 acre supermarket site in Bromley, East London, from British Land for £30m.

The site comprises a 70,000 sq ft Tesco supermarket, a 558-space car park, and a petrol filling station.

The investment was purchased on behalf of Newcore’s latest value-add vehicle, Newcore Strategic Solutions (NSS), due to the sites medium-term potential within a key regeneration area, as well as its short-term income from the existing operator.

NSS’s recent acquisitions include an NHS-backed GP surgery in Kent, two education investments in Oxford and Cambridge, and a food distribution centre in Colchester.

Harry Savory, chief information officer of Newcore Capital, said: “We are pleased to have purchased the Tesco Bromley-by-Bow and we are actively on the hunt for further covered land plays in strategic locations where there is a medium-term opportunity to enhance value through increased provision of social infrastructure uses – this is a key criteria for us, alongside the potential for strong risk-adjusted returns”.

In late 2023, Newcore announced the launch of a new core-plus investment vehicle, named The Newcore Social Infrastructure Income Fund. The fund – which is targeting £375m in equity commitments – is the firm’s largest yet and aims to capitalise on the strong underlying demand fundamentals for social infrastructure real estate.

Hugo Llewelyn, CEO, Newcore Capital, 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.”


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