Orchard Street strikes maiden deal for impact fund

The Orchard Street Social and Environmental Impact Partnership has purchased Euroway Trade Park, a multi-let industrial estate in Aylesford, for an undisclosed sum.

Located within 10 minutes’ drive of the M2 motorway and 20 minutes’ drive of the M25, the property comprises seven units totalling around 89,000 ft2 (8,300 m2).

Five of the seven units have lease expiries within 12 months, offering Orchard Street the ability to grow rental income in the short term and improve the sustainability credentials of the estate.

The firm intends to undertake low embodied carbon refurbishments, install solar PV panels and EV charging hubs, electrify all units across the estate, and upgrade the EPCs to A and A+ ratings from the current C to E ratings.

Orchard Street will also enhance on-site biodiversity, and provide a local apprenticeship programme for each refurbishment.

The acquisition follows the first close of the impact fund in November last year, with cornerstone investment from Brunel Pension Partnership, one of the UK’s Local Government Pension Scheme Pools.

The fund‘s capital also includes co-investment from Orchard Street’s partners and members of its senior team.

Barney Rowe, portfolio manager of the impact fund at Orchard Street IM, commented: ‘This first acquisition made on behalf of our Impact Fund represents an excellent opportunity to generate strong financial returns alongside a significant positive social and environmental impact on behalf of our investors.

‘We strongly believe that assets which offer high quality space and boast strong sustainability credentials will command the best rents and values, and this well-located, multi-let asset provides us with numerous opportunities to reposition the estate into a best-in-class industrial property.’

Orchard Street was advised on the acquisition by M1, whilst the seller was advised by Knight Frank.