Orchard Street deploys £200m for second Impact Fund within 6 months of launch

Orchard Street has concluded a highly successful end to the year for its recently launched UK Decarbonisation Impact Fund. The Fund has a decarbonisation-led active asset management strategy and the recent acquisitions all present excellent opportunities to reduce occupier costs and deliver future-proofed, Paris-aligned assets.

The December acquisitions included two off-market transactions: the Fund acquired a three-asset portfolio which included two prime South-East industrial estates and a dominant regional retail warehouse park. The industrial element comprises Cox Lane Industrial Estate in Chessington and Avro Way Industrial Estate in Weybridge, both located in established, supply-constrained South-East markets with excellent access to the A3 and M25. Together, the estates provide more than 225,000 sq ft of modern industrial space which are fully let to strong covenants with reversionary potential.

The portfolio also included Junction One Retail Park in Rugby, a 204,000 sq ft scheme extending across 19.9 acres and well located at Junction 1 of the M6. Anchored by B&M and The Range, the park is home to a strong line-up of national retailers and several drive-thru restaurants and benefits from an affluent catchment along with excellent connectivity. It was purchased for in the region of £37.5m. In a separate transaction, the Fund acquired Fairway Industrial Estate in Feltham, a standalone 100,000 sq ft multi-let industrial estate located close to Heathrow airport.

Across the Fund, Orchard Street utilises its proprietary Impact Framework to undertake extensive decarbonisation initiatives including solar PV installation, EV charging infrastructure, electrification and targeted improvements to EPC ratings, as well as wider social benefits through biodiversity enhancements and growth of green construction skills. These measures will create income resilience and deliver long-term value for investors through the environmental future-proofing of the properties.

Commenting on the year-end activity, Tom Chadwick, Partner at Orchard Street said:
“The pace of deployment is a strong endorsement of our strategy and sourcing capability having completed £200m of high-quality acquisitions since Fund launch in the summer, most of which were off market. 2025 was an exceptionally busy and successful year for Orchard Street as we have also brought on board two new clients with c.£650m of assets bringing our total Assets Under Management to around £2bn Orchard Street remains acquisitive and we are excited to capitalise on this momentum into 2026."