The ACCESS Pool has appointed Orchard Street Investment Management to oversee its impact real estate strategy, with an initial commitment of £100m (€118.8m).
The manager of £45bn in UK local government pension scheme (LGPS) assets said Orchard Street has been appointed to focus on delivering strong financial returns while also prioritising the decarbonisation of buildings.
This will be achieved through a “formal impact investment framework” that emphasises measurable targets, ensuring attractive ESG-driven outcomes, it added.
Councillor Mark Kemp-Gee, chairman of the ACCESS joint committee, said: “This allocation marks a key step in our ongoing initiative to diversify into the private markets. We have been impressed with Orchard Street’s history of impact investing in commercial real estate and their leading stance on responsible investing.
“This investment partnership will provide attractive long-term financial returns for our members alongside measurable targets to decarbonise, improve health and create social engagement with local communities with a manager that is fully aligned with all the outcomes desired by our members.”
Philip Gadsden, manager partner of Orchard Street, said: “This significant commitment from the ACCESS pool is testament to our strong track record of responsible investment and adds a second LPGS Pool to our stable of institutional clients, following on from the launch of the Orchard Street Social and Environmental Impact Fund with cornerstone investment from the Brunel Pension Partnership.
“We look forward to working closely with the ACCESS team to create a market-leading impact strategy in UK direct real estate, with the objective of accelerating the decarbonisation of existing real estate assets and creating a truly positive impact.”
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