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Orchard Street plans £2B to £3B for UK real estate decarbonisation
The firm says it has £1.8B in assets under management and is targeting higher-rated energy performance, including upgrades to A and A+ for a newly acquired industrial estate.
Orchard Street Investment Management plans a major expansion of its UK real estate decarbonisation programme, targeting total investment of £2B to £3B over the next few years, according to Bisnow.
The firm’s latest evergreen decarbonisation fund has drawn two rounds of commitments from local government pension schemes, and Orchard Street is pursuing an open-ended, UK-only strategy across multi-let industrial and retail parks and residential assets.
Orchard Street partner Tom Chadwick said the approach involves buying “brown” assets that are discounting because they are not fit for purpose, then upgrading them to reduce occupational costs for tenants and make properties more resilient, potentially allowing tenants to pay slightly higher rents.
Bisnow also notes that Orchard Street has £1.8B in assets under management and recently completed its first acquisition for a £400M impact partnership in January, buying the seven-unit, 89K SF Euroway Trade Park in Aylesford, with plans that include solar panels and electric vehicle charging, electrifying units, and improving energy performance certificates from C to E ratings up to A and A+.