Orchard Street Investment Management has acquired an ultra-urban industrial estate in Charlton, South East London, for circa £21m on behalf of its £400m impact fund.
All nine units at the 1980s-built estate are subject to a lease event in the next three years, providing an opportunity to significantly grow the passing rent from its low rental base and improve the sustainability credentials of the estate in line with the objectives of the Orchard Street Social and Environmental Impact Partnership fund.
The fund intends to undertake low embodied carbon refurbishments across the fully let estate to improve the EPC rating of the units from B to A+.
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.”
Orchard Street was advised on the acquisition by DTRE. The vendor was advised by Gerald Eve.
