ACCESS Pool hires Orchard Street as an impact real estate manager | Impact Investor

The UK-based Local Government Pension Scheme has collectively made the first investment in a real estate investment of 100m to accelerate the decarbonisation of existing assets.

ACCESS Pool, a consortium of 11 Local Government Pension Scheme (LGPS) holding authorities in the UK with combined assets of around £45,000 (€53bn), has hired Orchard Street Investment Management to develop its property portfolio.

LGPS has made an initial investment of £100m, following recent allocations to other areas of the private market, including affordable housing and timber.

Orchard Street will focus on the decarbonisation of buildings as well as the introduction of attractive income, both parties said.

The latest allocation of infrastructure “represents an important step towards our diversification in the private sector,” said Mark Kemp-Gee, chairman of the ACCESS joint committee.

Tender process

ACCESS Pool chose Orchard following a competitive process, launched by Apex Investment Advisory in July, because of “the track record of investing in commercial real estate and their leadership in strategic investment”, said Kemp-Gee.

Kemp-Gee expected this new partnership to bring “long-term financial attractions to our members along with measurable goals to decarbonise, improve health and create partnerships with communities and managers that are fully aligned with the results our members want”.

Philip Gadsden, managing partner of Orchard Street, said the commitment from the ACCESS pool is “a testament to our strong history of strategic investment.”

Following the launch of the Orchard Street social and environmental impact fund, with an investment corner from the Brunel Pension Partnership, joining the ACCESS pool “adds a second LPGS Pool to our stable of school clients”, Gadsden said.