Industry Vets Seek £300M For New High-Return UK Fund
An investment manager set up at the height of the pandemic is seeking £300M of equity for its second fund targeting value-add and opportunistic UK real estate assets.
Northtree Investment Management has raised £75M from an unnamed international private investor for Northtree Real Estate Partners II, IPE Real Assets reported.
Small UK-only funds are increasingly rare in real estate, with capital becoming ever more concentrated in the hands of a smaller number of larger investors.
Northtree’s first fund targeted urban logistics assets and regional offices. The firm received a £100M investment from BGO’s Strategic Capital Partners platform in January 2025 to set up an urban logistics joint venture.
The JV was seeded with seven assets and quickly bought two more, in Basingstoke in the south-east and Skelmersdale in the north-west.
Northtree co-founders Sandy Wilson and Nathan Hargreaves worked together for 16 years at Columbia Threadneedle, managing the £1.7B UK Zurich Pension Fund and the £2B Threadneedle Pension Property Fund, respectively.
As a value-add or opportunistic fund, the vehicle will target returns of 12% or more.
At a different point on the risk spectrum, Newcore Capital has completed a second close for its £375M core-plus income fund, the Newcore Social Infrastructure Income Fund.
The fund has secured additional investment from an institutional pension scheme client of Aberdeen Investments. It is seeking high-quality, income-producing UK social infrastructure real estate with a target net return of 9% to 11% a year.
Deals the fund has undertaken since it started investing last March include a 20K SF primary healthcare centre in Bushey, a trunk road service area with a hybrid model forecourt in Lincolnshire, a 100-place children’s nursery in London, and a waste management site in Norwich.
