Orchard Street announces first close of £400m Impact Fund

Orchard Street Investment Management LLP, the UK-focussed commercial property investment manager, has revealed the launch and first close of its inaugural Impact Fund, Orchard Street Social and Environmental Impact Partnership. The fund, which has been approved by The Townsend Group, will target value-add real estate investment opportunities with the potential to generate a measurable social and environmental impact. The firm said just under £90m has been committed at first close, with Brunel Pension Partnership, one of the UK’s Local Government Pension Scheme pools, acting as the fund’s cornerstone investor on behalf of eight of its 10 underlying local authority partner funds. This capital also includes co-investment committed by Orchard Street’s partners and members of Orchard Street’s senior team, demonstrating the Firm’s personal and professional alignment of interests in creating investment opportunities that make an environmental and social difference. The fund will focus on three main impact areas: Decarbonising existing buildings via an accelerated programme of refurbishment; Investing in local communities, using a proprietary place-based needs model to identify and respond to local social issues; and Making buildings healthier for those that live and work in them, for example through improving air quality, access to green space and wellness amenities. As sector agnostic, the fund will invest into its pipeline of UK wide opportunities that meet its “stringent impact criteria”. Orchard Street added it has also linked 30% of its performance fees to the achievement of the fund’s specific impact objectives, thereby “aligning itself directly not only to financial outcomes but also to important environmental and social goals”. Orchard Street has said the fund will also be advised by JLL Upstream Sustainability Services, the largest specialist sustainable property team in the UK, which advised on the development of the fund; Carbon Intelligence, part of Accenture, which will manage the ESG performance data for the Fund’s assets; and BlueMark, which will provide ongoing independent assurance of the Fund’s impact objectives and reporting. Philip Gadsden, portfolio director of SEIP and managing partner at Orchard Street Investment Management, said: “One of the underlying drivers behind both our efforts as a business and the launch of this Fund is the forecast that 80% of the buildings that will exist in the UK by 2050 already exist now, underlining the impetus for immediate action to be taken today to remediate existing but underutilised buildings, and aligning the Fund with Article 8 of the SFDR*. "Buildings that offer top quality space and strong ESG credentials will continue to command the best rents and prices, with this Fund therefore providing not only an avenue for investors to enjoy strong financial returns but also a significant positive social and environmental impact.” He added: ‘By fully integrating impact into our investment approach - with ambitious decarbonisation, wellbeing and community investment targets – the Fund will accelerate the property sector’s decarbonisation, while maximising the value of buildings as a tool to promote health and community investment. “The Fund was launched on the back of Orchard Street’s strong credentials as a responsible investor and our excellent track record as an investor in the UK market. We are delighted to have attracted Brunel as the Fund’s cornerstone investor and look forward to working closely with them as we take the next steps in converting our ambitions into successful outcomes.”

Orchard Street announces first close of £400m Impact Fund

The Fund, which has been approved by The Townsend Group, will target value-add real estate investment opportunities with the potential to generate a measurable social and environmental impact

Read Next

Construction hiring to fall for first time since 2014, data finds

Harworth profits plummet in FY22 amid market downturn

British Land hires Stanton Williams to design Canada Water lab space

Forterra revenues up 23% but group warns of future uncertainty

Kingsbridge Estates and Bridges Fund Management complete logistics facility

Construction hiring to fall for first time since 2014, data finds

Harworth profits plummet in FY22 amid market downturn

British Land hires Stanton Williams to design Canada Water lab space

Forterra revenues up 23% but group warns of future uncertainty

Kingsbridge Estates and Bridges Fund Management complete logistics facility

Stage Fifty receives approval for Wycombe Film Studios

Nottingham BTR scheme brought to market for £23m

Catalyst and GLA exchange contracts over St Ann’s development

Savills advises on sale of 66 Derby homes to Hearthstone

Henry Boot sells 31-acre Coventry side to Countryside Partnerships

Read Next

Construction hiring to fall for first time since 2014, data finds

Harworth profits plummet in FY22 amid market downturn

British Land hires Stanton Williams to design Canada Water lab space

Forterra revenues up 23% but group warns of future uncertainty

Kingsbridge Estates and Bridges Fund Management complete logistics facility

Related Articles

Stage Fifty receives approval for Wycombe Film Studios

Nottingham BTR scheme brought to market for £23m

Catalyst and GLA exchange contracts over St Ann’s development

Savills advises on sale of 66 Derby homes to Hearthstone

Henry Boot sells 31-acre Coventry side to Countryside Partnerships