Newcore Capital, the UK social infrastructure real estate investment manager, has completed the sale of two industrial open storage (IOS) assets in Greater London for a combined £22 million. The disposals were made on behalf of Newcore Strategic Situations IV (NSS IV), the firm’s fourth value-add fund.

The first asset, an 11.45-acre site in Ickenham, was sold for £10 million to an owner-occupier industrial plant and machinery hire business. The second, an 8-acre site in Harefield, was sold for £12 million to another owner-occupier.

Newcore originally acquired both assets in 2021 and implemented a comprehensive asset management programme to enhance their value. This included securing planning permission for extended IOS use, redevelopment and leasing initiatives, and achieving a 31% rental uplift.

The sales form part of NSS IV’s value-add strategy, which focuses on IOS assets that provide essential services requiring physical space and demonstrate resilience to technological change. To date, NSS IV has realised £45.5 million in asset sales, delivering a gross levered internal rate of return (IRR) of 21.9%.

Newcore continues to deploy capital through its fifth value-add fund, while also recently launching a core-plus vehicle dedicated to social infrastructure investments.