Orchard Street Investment Management has concluded a highly successful end to the year for its recently launched UK Decarbonisation Impact Fund, deploying €237m (£200m) in strategic acquisitions within just six months. The Fund's decarbonisation-led active asset management strategy is targeting properties that offer substantial opportunities to reduce occupier costs whilst delivering future-proofed, Paris-aligned assets, a critical factor as institutional investors increasingly demand ESG credentials alongside financial returns.
The December acquisitions included two off-market transactions, with the Fund acquiring a three-asset portfolio comprising two prime South East industrial estates and a dominant regional retail warehouse park. The industrial element includes 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 20,903 m² (225,000 sq ft) of modern industrial space, which is fully let to strong covenants with reversionary potential.
The portfolio also included Junction One Retail Park in Rugby, an 18,951 m² (204,000 sq ft) scheme extending across 8.05 hectares (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 €44.5m (£37.5m). In a separate transaction, the Fund acquired Fairway Industrial Estate in Feltham, a standalone 9,290 m² (100,000 sq ft) multi-let industrial estate located close to Heathrow airport.
What sets this deployment apart is Orchard Street's proprietary Impact Framework, which addresses a gap many investors overlook: the quantifiable measurement of decarbonisation impact. The framework enables extensive 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. For developers and institutional investors, this data-driven approach offers transparent metrics on both environmental impact and the financial benefits of reduced operational costs, creating a compelling investment thesis in an era of rising energy prices and regulatory pressure.
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."
The rapid deployment demonstrates strong institutional appetite for impact-driven real estate strategies that combine environmental credentials with robust financial fundamentals. With total Assets Under Management now reaching approximately €2.37bn (£2bn) following the addition of two new clients with circa €771m (£650m) of assets in 2025, Orchard Street is positioning itself as a leader in the decarbonisation-focused investment space.
People mentioned:
• Tom Chadwick, Partner, Orchard Street Investment Management
Companies mentioned:
• Orchard Street Investment Management, UK specialist real estate investment manager
• B&M, Retail anchor tenant
• The Range, Retail anchor tenant
