Orchard Street makes debut purchase for impact fund

Orchard Street Investment Management has completed the first acquisition for its £400 million ($508 million) impact fund. 

The UK investment manager’s Orchard Street Social and Environmental Impact Partnership acquired Euroway Trade Park, an 89,000 sq ft multi-let industrial estate in Aylesford, Kent for a reported £14 million ($17.8 million.

Orchard Street said it intends to undertake low-embodied carbon refurbishments, install solar PV panels and EV charging hubs, electrify all units and improve the units’ energy performance certificates to A and A+ ratings from the current C to E ratings. The manager will also improve the air quality and thermal efficiency of the units’ offices, enhance on-site biodiversity, and provide a local apprenticeship programme for each refurbishment.

Barney Rowe, portfolio manager at Orchard Street, said: “This first acquisition made on behalf of our impact fund represents an excellent opportunity to generate strong financial returns alongside a significant positive social and environmental impact on behalf of our investors. We strongly believe assets which offer high quality space and boast strong sustainability credentials will command the best rents and values, and this well-located, multi-let asset provides us with numerous opportunities to reposition the estate into a best-in-class industrial property.”

The fund is targeting value-add investment opportunities with the potential to generate a measurable social and environmental impact through decarbonisation, investing in local communities and improving the health and wellbeing of building users and the local population. 

A portion (30%) of the manager’s performance fee is linked to achieving the fund’s impact objectives.