Commercial property investment manager Orchard Street announced today the launch and first close of its inaugural Impact Fund, Orchard Street Social and Environmental Impact Partnership (SEIP), with £90 million committed.
The fund will target real estate investment opportunities with the potential to generate a measurable social and environmental impact.
Focus impact areas will include decarbonising existing buildings, investing in local communities, and making buildings healthier for those that live and work in them through improvements in air quality, access to green spaces and the addition of wellness amenities.
The firm stated that it has linked 30% of its performance fees to the achievement of the Fund’s specific impact objectives.
Philip Gadsden, Portfolio Director of SEIP and Managing Partner at Orchard Street, said:
“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’s cornerstone investor is Brunel Pension Partnership, one of the UK’s Local Government Pension Scheme pools. Additionally, Orchard Street’s partners and members of Orchard Street’s senior team also made co-investment commitments to the new fund.
Vanessa Jacka, Portfolio Manager, Brunel Pension Partnership, said:
“Brunel and its clients are delighted to be seeding this enlightened fund launch, whereby manager performance returns are linked to specific Responsible Investment objectives.”