Orchard Street Investment Management, the UK focused commercial property investment manager, has announced the launch and first close of its inaugural impact fund, Orchard Street social and environmental impact partnership (SEIP).
Just under £90 million (€105 million) 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 ten 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, 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. Specifically, it will focus on the three impact areas of decarbonising existing buildings via an accelerated programme of refurbishment; investing in local communities; and making buildings healthier for those that live and work in them.
Sector agnostic, the fund will invest into its pipeline of UK wide opportunities that meet its stringent impact criteria.
Orchard Street has also decided to link 30% of its performance fees to the achievement of the fund’s specific impact objectives, thereby aligning itself not only to financial outcomes but also to key environmental and social goals.
Source: https://propertyeu.info/Nieuws/Orchard-Street-achieves-first-close-of-inaugural-impact-fund/af9aa5fc-3b56-41a4-8862-edb7b8833c81, on 8 November 2022