UK-focused social infrastructure investment manager Newcore Capital has been appointed general partner to The Newcore Swansea Social Infrastructure Partnership (NSSIP), a new the £50m-plus (US$68m) local impact fund launched in collaboration with Swansea Council.
NSSIP is a UK limited partnership that will deliver social infrastructure, social housing and social care, in the Swansea region.
“This partnership presents us with a unique opportunity to enhance and expand social infrastructure, social housing and social care provision in the Swansea City region, while generating strong and steady returns,” said Jeff Dong, head of Finance, City and County of Swansea Pension Fund.
With Swansea Council – as the Administering Authority of the £3.6bn City and County of Swansea Pension Fund – as a cornerstone investor, and with Newcore co-investing alongside, the £51m fund will be focused towards delivering positive social outcomes for the region alongside strong, sustainable financial returns for its investors. NSSIP is structured to be open to other investors interested in improving outcomes in the Swansea region.
The fund will be managed by Newcore and target value-add and core-plus investments, including existing assets that can be refurbished as well as strategic land for development, income and planning opportunities. It will have a 10-year life and will target an 8-10% pa IRR net of fees. Newcore has also voluntarily waived performance fees from the vehicle.
“With this partnership, we hope to provide a blueprint for how private capital can be used to address the UK social infrastructure funding gap in a sustainable manner, while at the same time delivering strong, stable returns as an investment proposition,” said Hugo Llewelyn, CEO, Newcore Capital. “There is a clear opportunity for local government pension schemes to commit to investments in local social infrastructure, which can deliver sustainable returns while improving the scale and quality of much-needed local services through the provision of physical assets that enable them.”
