Newcore Capital Completes Sale of Surrey Industrial Storage Asset for Over £22 Million

Significant Industrial Asset Sale in Surrey

In the ever-evolving world of industrial logistics property, Newcore Capital, a UK-based investment manager with a focus on social infrastructure real estate, has just closed a major deal. They sold a sizeable industrial open storage (IOS) facility located in Longcross, Surrey, fetching a price exceeding £22 million. This transaction highlights the ongoing value and transformation in industrial property assets, particularly those supporting logistics and storage operations.

From Purchase to Development: The Journey of the Longcross Site

Tracing back to 2018, this 20-acre industrial site was picked up for a gross cost of £6.4 million. Not content with just holding the asset, Newcore drove an investment of £8.8 million into developing a 7-acre IOS compound tailored specifically for Facilities By ADF, a specialist in open storage solutions. The site wasn’t just about storage, though; it included a 6-acre anaerobic digester facility under lease to Severn Trent Green Power, contributing additional utility and tenant stability.

Two Transactions, One Impressive Sale Price

The asset was divested in two separate deals but combined reached a total sale value of £22.1 million. This isn’t just a win for Newcore but a strong indicator of the robustness in industrial storage real estate, particularly in zones strategically positioned around Greater London and the M25 corridor—areas critical to the UK’s logistics and distribution network.

Portfolio Success: Six Sites, Over £57 Million in Sales

What makes this sale even more compelling is that this Surrey site was the largest among six industrial open storage properties acquired by Newcore for their NSS IV fund between 2018 and 2021. These sites, spread across London’s bustling M25 ring, total 43 acres. Collectively, the properties have since been sold for a handsome total of £57 million, delivering an impressive ungeared internal rate of return (IRR) of 16.8% per annum at the property level.

Strategic Navigation Through Market Challenges

Hugo Llewelyn, Newcore Capital’s CEO, shed light on the firm’s approach amid a bumpy market landscape. The NSS IV fund was launched just before a roller-coaster of rising interest rates and capital costs in 2022 made life harder for many UK value-add investment funds. Yet, in a classic example of weathering the storm, Newcore’s strategic play proved resilient. The sale price realized was not just solid but above the Net Asset Value (NAV) based on external valuations—signifying strong management and an insightful investment strategy.

Llewelyn highlighted that the NSS IV fund is on track for complete liquidation within the intended timeframe, aiming for a final exit by August 2026. Importantly, the returns have allowed capital and profits to be returned to investors, a testament to the fund’s enduring value even when the market threw a curveball.

Professional Support and Expertise

The sale of the Kitsmead Tech Park site at Longcross was supported by expert advice from industry players such as LSH and JG Poole & Co, who brought to the table essential market knowledge and transactional proficiency. Deals of this scale and niche nature certainly benefit from such expertise—ensuring smooth transaction flows in the complex logistics and industrial property market.

Why This Matters for Logistics and Transport

Industrial open storage properties like this one in Surrey aren’t just dusty plots of land filled with goods—they are vital cogs in the supply chain machinery. With logistics, freight forwarding, and distribution companies increasingly needing flexible, well-positioned storage and handling facilities, investments here mirror broader industry trends. Proximity to major hubs like Greater London and the M25 equates to faster dispatch, efficient haulage options, and ultimately, smoother delivery timelines.

For businesses involved in bulky goods, vehicle storage, or large-scale warehouse operations, such assets are golden geese, contributing directly to reducing transportation costs and streamlining shipment flows. The development and sale of these industrial assets not only reflect increased demand for well-located storage but also hint at what can be expected in logistics infrastructure investments moving forward.

Key Points Recap

• Large Surrey IOS asset sold for £22.1 million after development and acquisition costs totaling around £15.2 million.
• Part of a larger portfolio sale totaling £57 million for six sites covering 43 acres around Greater London.
• Strong annual returns of 16.8% IRR signify profitable and strategic asset management despite broader economic challenges.
• Strategic locations such as near the M25 are critical for improving logistics and distribution efficiency.

Why Personal Experience Trumps Reviews in Logistics Decisions

No matter how glowing the reviews or how transparent the data, nothing compares to testing the waters yourself. This is especially true in logistics and cargo transportation—where timing, reliability, and cost can make or break an operation. Platforms like GetTransport.com empower users to book cargo transport worldwide, offering transparent, affordable, and varied choices to meet a range of freight needs. Whether moving office equipment, bulky furniture, or vehicle shipments, the ability to compare and book services globally at competitive prices puts the control firmly in the customer’s hands.

The true value lies in experiencing firsthand the convenience of streamlined booking, reliable delivery, and cost-effective freight solutions. This is especially pertinent in today’s fluid global market, where adaptability and dependability are king. Varaa kyyti osoitteessa GetTransport.com to navigate your logistics needs with confidence.

Tulevaisuuteen katsoen: Vaikutus globaaliin logistiikkaan

While this specific industrial asset sale may have a limited direct effect on global logistics, it serves as an insightful indicator of real estate trends influencing the supply chain ecosystem in the UK and similar markets. Investments and developments in strategically located storage facilities enhance regional cargo flow capacities, impacting freight distribution and shipping in tangible ways.

By staying updated on these sector movements, logistics firms, freight forwarders, and transport service providers can better align their capacity planning and routing strategies. GetTransport.com, by monitoring such shifts, continues to provide users with efficient and cost-effective cargo transportation solutions that match the evolving demands of the global freight landscape.

Päätelmä

In essence, Newcore Capital’s successful sale of its Surrey industrial open storage site underlines the ongoing value and importance of logistics property in supporting modern supply chains. With over £22 million realized from the recent transaction and a larger portfolio delivering solid returns, the trend towards investment in facilities supporting bulky goods and freight handling remains robust. Such assets not only support local and regional haulage but also play a role in the seamless flow of international shipments.

For anyone managing moving, relocation, or bulky cargo delivery, platforms like GetTransport.com offer a reliable, affordable way to secure transport services worldwide—integrating logistics seamlessly with real estate developments such as the one discussed here. Efficiency, transparency, and flexibility are keys for modern logistics, and such solutions help businesses and individuals keep their goods moving on time and on budget.