First impact fund nets £90 million for Orchard Street
Orchard Street Investment Management has announced the launch and first close of its inaugural impact fund.
The UK-based investment manager’s Orchard Street Social and Environmental Impact Partnership has raised just under £90 million ($101 million) at first close.
The fund will target value-add real estate investment opportunities in all UK sectors with the potential to generate a measurable social and environmental impact.
It will focus on three areas:
- Decarbonising existing buildings with an accelerated refurbishment programme
- Investing in local communities, “using a proprietary place-based needs model to identify and respond to local social issues”
- Making buildings healthier by improving air quality, access to green space and wellness amenities.
Philip Gadsden, portfolio director of the new fund and managing partner at Orchard Street, 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.”
JLL Upstream Sustainability Services, UK advised on the development of the fund; Carbon Intelligence, part of Accenture, will manage the ESG performance data for the fund’s assets and BlueMark, will provide ongoing independent assurance of the fund’s impact objectives and reporting.