Orchard Street, a manager of commercial property investments, announced the opening and first closing of its maiden Impact Fund, Orchard Street Social and Environmental Impact Partnership (SEIP), with £90 million committed.
The fund will prioritize real estate investment opportunities that have the potential to deliver measurable social and environmental impact.
Focus effect areas will include decarbonizing existing buildings, investing in local communities, and making buildings healthier for those who live and work in them by enhancing air quality, increasing access to green spaces, and incorporating wellness services.
The business has reportedly tied 30 percent of its performance fees to the Fund's specific impact objectives.
Philip Gadsden, Portfolio Director of SEIP and Managing Partner at Orchard Street, commented as follows:
"By fully incorporating impact into our investment methodology – with aggressive decarbonization, wellness, and community investment targets - the Fund will expedite the decarbonization of the property industry while maximizing the value of buildings as a vehicle to promote health and community investment."
Brunel Pension Partnership, one of the UK's Local Government Pension Scheme pools, is the fund's primary investor. In addition, Orchard Street's partners and senior team members committed to co-invest in the new fund.
Vanessa Jacka, Portfolio Manager of Brunel Pension Partnership, commented:
"Brunel and its clients are thrilled to be seeding the launch of this enlightened fund in which manager performance returns are tied to specified Responsible Investment objectives."
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