Orchard Street Investment Management (Orchard Street) on behalf of its Impact Fund acquired an urban industrial estate in Charlton for c. €24.6 million.
The fully-let freehold estate is located in an established commercial centre in South East London, approximately six miles east of Southwark and London Bridge and 2.4 kilometres southeast of Greenwich Peninsula and The O2 Dome. The property benefits from last-mile accessibility to Central London, Canary Wharf and the wider M25 motorway network while being adjacent to the Charlton Riverside opportunity area which is targeting the redevelopment of existing industrial space into 7,500 new homes and other alternative uses. This reduction in industrial stock is expected to enhance rental growth prospects for the property and boost occupier demand during the Fund’s ownership.
All nine units are subject to a lease event in the next three years, providing opportunities to significantly grow the passing rent from its very low rental base and improve the sustainability credentials of the estate in line with the Fund’s Impact objectives. The Fund intends to undertake low embodied carbon refurbishments across the 1980’s estate to improve EPCs from B to A+ ratings, electrify units to reduce carbon emissions, install solar PV panels and air source heat pumps and add EV charging capabilities to the property. The Fund is also targeting significant biodiversity net gains and will partner with local institutions to provide an internship and apprenticeship programme focused on skills and training for each planned refurbishment.
Source: europe-re.com on the 1st of July, 2024
https://europe-re.com/orchard-street-im-acquired-industrial-estate-in-charlton-for-24-6m-gb/73194