Local Government Pension Scheme pool commits £100m to fund manager for decarbonisation-focused returns

Mark Kemp-Gee, chair of the Access joint committee, said its investment was part of its ongoing initiative to move into the private markets.

“We have been impressed with Orchard Street’s history of impact investing in commercial real estate and their leading stance on responsible investing,” Mr Kemp-Gee said.

“This investment partnership will provide 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.”

“This significant commitment from the Access Pool is testament to our strong track record of responsible investment,” said Philip Gadsden, managing partner of Orchard Street.

Access is Orchard Street’s second Local Government Pension Scheme pool client, after the Brunel Pension Partnership invested in the fund manager’s social and environmental impact fund.

“We look forward to working closely with the Access team to create a market-leading impact strategy in UK direct real estate, with the objective of accelerating the decarbonisation of existing real estate assets and creating a truly positive impact,” Mr Gadsden said.

In July, Access Pool invested £125m in Legal & General’s (L&G) new Affordable Housing Fund. L&G more than doubled the size of the pool in two weeks, driven by a £120m investment by the Greater Manchester Pension Fund.