Orchard Street has bought an industrial estate in Kent in its first acquisition for its £400m social and environmental impact fund.
The Orchard Street Social and Environmental Impact Partnership, which is backed by a local government pension scheme pool, is understood to have paid in excess of £14m for Euroway Trade Park, an 89,000 sq ft multi-let industrial estate in Aylesford.
The estate sits within 10 minutes’ drive of the M2 motorway and 20 minutes’ drive of the M25.
The freehold comprises seven units, five of which have lease expiries within 12 months.
Orchard Street is looking to grow rental income in the short-term and materially improve the sustainability credentials of the estate.
It plans to carry out low embodied carbon refurbishments, install solar PV panels and EV charging hubs, electrify all units across the estate, and improve the EPCs to A and A+, from the current C to E ratings.
Orchard Street said its plans also include improving the air quality and thermal efficiency of the units’ offices, enhancing on-site biodiversity, and providing a local apprenticeship programme on each refurbishment.
The fund reached its first close last November, with cornerstone investment from Brunel Pension Partnership. The fund‘s capital also includes co-investment from Orchard Street’s partners and members of its senior team.
The fund is targeting value-add real estate investment opportunities with the potential to generate a measurable social and environmental impact, via the decarbonisation of buildings, investing in local communities, and improving the health and wellbeing of building users, as well as the local population.
Orchard Street is linking 30% of its performance fees to the achievement of the fund’s specific impact objectives, aligning itself directly to both financial outcomes and environmental and social goals. Third party assurer BlueMark will carry out independent verification.
Orchard Street was advised on the acquisition by M1, while the seller was advised by Knight Frank.
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