Orchard Street Investment Management has added a South East London last-mile industrial estate to its UK real estate impact fund’s portfolio.
The UK property investment manager said it has invested £21m (€24.7m) to acquire the “ultra-urban, highly reversionary” industrial estate in Charlton for the Orchard Street Social and Environmental Impact Partnership.
The nine fully-let units are subject to a lease review in the next three years, providing opportunities to grow the passing rent from its current low base and improve the sustainability credentials of the estate in line with the fund’s impact objectives, Orchard Street said.
Orchard Street’s £400m Social and Environmental Impact Partnership targets value-add real estate investments that create positive social and environmental impact by decarbonising buildings, supporting communities and promoting health and wellbeing.
The Charlton transaction follows the fund’s inaugural acquisition of Euroway Trade Park, a multi-let industrial estate in Aylesford, last year.
Barney Rowe, portfolio manager of the impact fund at Orchard Street Investment Management, said: “This strategically located, multi-let asset represents an excellent addition to the impact fund’s portfolio. The estate won’t be environmentally compliant by the end of the decade without critical decarbonisation works, which we can address through leveraging our asset management expertise.
“The strength of its location and its multi-let profile provides us with numerous opportunities to improve its sustainability credentials whilst importantly allowing us to capture the highly reversionary rents in the near term to generate value on behalf of our investors.”
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