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Swiss SFO invests £100m in London property

A Swiss-domiciled single family office has appointed a London property investment manager to manage and acquire a portfolio of up to £100 million of residential real estate in the city.

A Swiss-domiciled single family office has appointed a London property investment manager to manage and acquire a portfolio of up to £100 million of residential real estate in the city.

Newcore Capital has been mandated to buy properties classified as houses in multiple occupation (HMO), which have typically been divided up into flats.

The real estate investment firm says it is their third single family office client, with the other two headquartered in the UK.

Newcore founder Hugo Llewelyn says the firm specializes in alternative real estate investments, such as residential, social infrastructure and storage properties, as opposed to traditional retail, office and industrial assets.

“If you invest in retail, such as shops, shopping centres, retail parks, the internet has obviously changed those asset classes massively, because so much of the revenue is delivered online rather than through bricks and mortar,” he explained.

Bill O’Neill, chief investment officer of UBS Wealth Management Research agrees that high street real estate in particular has some long-term issues.

“In all these situations you have to take into account the amount of leverage you’re taking on plus the illiquid nature of the structures,” he said.

UBS is forecasting a 10% increase in average UK house prices in the next year driven by an improving economic outlook, reduced bank leverage ratios and government supported schemes for first home buyers.

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