ImpactAlpha, November 2 — U.K.-based commercial real estate investor Orchard Street Investment Management has raised $103.3 million in a first close from investors including U.K.-based pension fund Brunel Pension Partnership and members of its senior executive team.
Orchard Street is looking to raise £400 million ($459 million) to accelerate decarbonization for buildings in its portfolio and make the buildings healthier for tenants by adding air quality and other wellness amenities.
The Social and Environmental Impact Partnership fund will also take a place-based investing approach to tackle social issues in local communities in the U.K. Emissions from occupiers in Orchard Street’s office, industrial and other buildings represent more than 90% of its annual carbon footprint.
Tideline’s BlueMark will provide independent impact reporting and verification services for the fund. Accenture’s Carbon Intelligence will monitor the fund’s ESG performance data.
Orchard Street will reinvest 30% of the fund’s returns to achieve impact objectives. By integrating impact into its investment approach, Orchard’s Philip Gadsden said “the fund will accelerate the property sector’s decarbonization, while maximizing the value of buildings as a tool to promote health and community investment.”