The UK-based Local Government Pension Scheme collective has made an initial investment into impact real estate of £100m in order to speed up the decarbonisation of existing assets.
The ACCESS Pool, a collaboration of eleven Local Government Pension Scheme (LGPS) administering authorities in the UK with combined assets of around £45bn (€53bn), has hired Orchard Street Investment Management to manage its impact real estate strategy.
The LGPS collective has made an initial investment into impact real estate of £100m, after recent allocations to other areas of the private markets, including social affordable housing and timber.
Orchard Street will focus on the decarbonisation of buildings as well as the delivery of attractive financial returns, both parties said.
The recent allocation to impact real estate “marks a key step in our ongoing initiative to diversify into the private markets”, said Mark Kemp-Gee, chairman of the ACCESS joint committee.
Tender process
ACCESS Pool picked Orchard following a competitive process, which was started by Apex Investment Advisory in July, because if its “history of impact investing in commercial real estate and their leading stance on responsible investing”, Kemp-Gee said.
Kemp-Gee expected the new partnership to deliver “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 the commitment from the ACCESS pool is “testament to our strong track record of responsible investment.”
Following the launch of the Orchard Street social and environmental impact fund, with cornerstone investment from the Brunel Pension Partnership, the cooperation with ACCESS pool “adds a second LPGS Pool to our stable of institutional clients”, Gadsden said.
