Fund information
| Manager | Yoo Capital Investment Management LLP |
| Fund name | Yoo Capital Fund II LP |
| Status of fund | In development |
| Asset class | Real estate |
| Target return | 8% |
| Target sector | Real estate development |
| Target geography/ region(s) | London |
| Fund objective | YCFII focuses on creating sustainable, inclusive spaces through urban regeneration projects that prioritise environmental sustainability, job creation, and community engagement. The Camden Film Quarter (CFQ), Saville Theatre, and Shepherds Bush Market (SBM) developments are aligned with just transition goals by improving environmental sustainability, ensuring socio-economic equity, and amplifying community voices in their planning and execution. |
Alignment with Just Transition Criteria: 1 – product-level commitment to the three Just Transition Elements
Yoo Capital Investment Management (YCIM) is committed to improving the environmental impact from our projects, increasing socio-economic opportunities, and encouraging community voice through engagement.
YCIM aims to deliver transformative real estate projects that benefit existing communities while providing enhanced value for investors, while involving stakeholders in decision making.
The projects in Yoo Capital Fund II (YCFII) were selected because of their potential to provide significant social value and benefit to the local community. Each project went through a screening process to determine its potential to:
- deliver partnerships;
- give access to the community;
- provide an affordable offering;
- transform its immediate area.
YCIM works to mitigate the environmental impact of its projects and improve outcomes where possible.
Theory of Change
YCIM’s theory of change is built around the belief that real estate development can serve as a catalyst for the benefit of the environment and community empowerment. Therefore, each project has been carefully selected as a challenge to uplift the surrounding area. By embedding the three Just Transition Elements into its projects, YCIM aims to create lasting, positive impacts on local communities.
Expected outcomes:
- Environmental: Reductions in energy consumption and carbon emissions through the integration of green building practices, also focusing on the longevity of the assets.
- Social equity: Job creation and local economic development, supporting small businesses.
- Community empowerment: Active engagement with local residents and stakeholders ensuring that developments reflect community needs. Training programmes and work opportunities for the community.
Contributions:
- Investor/developer: YCFII commits resources to ensure its projects meet high sustainability and social equity standards, affordable housing and office spaces.
- Community contributions: Community members and local organisations contribute by providing feedback during public consultations.
Key Performance Indicators (KPIs)
| Pillar 1 KPIs – Empower authentic local communities | ||
|---|---|---|
| Title | Target | 2023 Status |
| Percentage (%) of space that is designated affordable per project | 15% | |
| Number of new good quality, well- paying jobs supported | 5,000 | 2,000 consented in planning |
| Total area available for community and public use per project (%) | 23% | |
| Response rate (%) from annual staff satisfaction survey | 86% | |
| Staff turnover (%) | 20% | 21% |
| Climate and Environmental KPI | ||
|---|---|---|
| Title | Target | 2023 Status |
| Portfolio embodied carbon in construction (kgCO2e/m2 GIA) | 650 kgCO2e/m2 | SBM: 689.9 kgCO2e/m2 Saville: 582 kgCO2e/m2 |
| Portfolio embodied carbon (kgCO2e/m2 GIA) | 1,400 kgCO2e/m2 | SBM: 1,012 kgCO2e/m2 Saville: 966 kgCO2e/m2 |
| Percentage (%) materials with recycled content used across portfolio | 20% by weight | SBM: 8.7% |
| Percentage (%) materials certified under BREEAM-recognised schemes | 100% timber 36% by weight for all other materials | Saville: 100% Timber |
| Percentage (%) materials recovered across portfolio | SBM: 21% re-use of demolition waste onsite | |
| Percentage (%) construction waste diverted from landfill | SBM: 95% Saville: 95% | |
YCIM will measure and report progress using the following standards to highlight adherence to the highest global standards of governance, transparency, and disclosure:
- ISO 14001 certification: YCIM is ISO14001 certified to validate a comprehensive environment management system (EMS). The EM
AS? includes proactive measures to minimise environmental footprint, comply with relevant legal requirements, and achieve environmental objectives. - Percentage (%) portfolio with BREEM Excellent Certification: YCFII aims to achieve BREEM Excellent certification across the entire portfolio to showcase the work on ESG from a third-party, independent perspective. BREEM is a green building certification internationally recognised as a standard of sustainability, quality and value that can be applied across the entire building lifecycle. Saville Theatre and SBM have achieved BREEAM Excellent in the pre-assessment process and aim to achieve the same for CFQ.
- Percentage of WELL Certification/precertification: YCFII aims to achieve WELL certifications for as many of the projects as possible to demonstrate the commitment to social value, and health and well-being. WELL certifications measure, certify and monitor the built environment impact on human health and well-being, focusing on factors such as air, water, light and comfort. YCFII have achieved WELL Precertification for SBM.
- GRESB and PRI scores: YCIM is committed to disclosing GRESB (Global Real Estate Sustainability Benchmark) and UNPRI (United Nations Principles for Responsible Investment) scores. GRESB is a globally recognised framework that assesses and benchmarks ESG performance of real estate and infrastructure investments. UNPRI is a global initiative that supports investors in incorporating ESG factors into investment decisions.
Investment process
YCIM looks at ESG from the onset, with a focus on social value, public sector engagement and longevity of projects.
- Deal flow stage: Initial screening and Due Diligence. YCIM identify investment opportunities that have potential for positive social value and pre-screen for ESG related externalities.
- Value creation stage: During the investment holding and development period, YCIM implements measurable sustainable and social asset management initiatives. KPIs and improvement targets are implemented at a fund and asset level, while outcomes are linked to the investment and investors’ reporting requirements.
Mitigation and escalation strategies
Any risks are reported to the ESG Committee, which comprises members of the development and finance teams as well as the Investment Committee (IC). If substantial, these risks are escalated up to the IC and reported to investors.
Embedding community voice
Yoo Capital commits to integrating community voice into every stage of the development process and follows a place-based impact investment (PBII) framework to guide the approach to social value.
YCIM engagement strategies have phases that are adapted and tailored for each project. Social value and additionality are built through each phase to deliver social value from ‘Phase 3’ onwards.
| Phase 1: Investment | Phase 2: Planning | Phase 3: Design | Phase 4: Construction | Phase 5: Operation | |
|---|---|---|---|---|---|
| Phase description | Due diligence and early appraisal pre-acquisition | Site acquired and core project team appointed | Project team evolving designs during pre-application process | Planning permission secured and project under development | Building tenanted and operated |
| Phase of engagement | Stakeholder research & due diligence. Initial social value analysis to assess opportunity for additionality. | Begin stakeholder engagement to gain insight and understanding, and identify potential social value additionality. | Involve stakeholders on the design of the scheme. | Continued engagement with stakeholders in line with Considerate Constructors Scheme. Delivery of social value through jobs. | Tenant social value scheme and satisfaction monitoring in place. |
Statement of community engagement
Our outreach to the local community has included:
- 33,000+ flyers and newsletters delivered locally
- 60+ responses on our Commonplace website
- 4 public consultations events
- 700+ people total attendance of all consultations and meetings
- 180+ addresses in email database
- 100+ pieces of written feedback received at our consultation events
- Average of 3 meetings held with each Sheperd’s Bush Market trader
- 90%+ traders have agreed to HoTs
The objectives of the public consultations were to:
- work with traders to design improvements to the Market that meet their business needs, are functional and robust, attract new customers and avoid inadvertent gentrification;
- agree meaningful packages of support with the traders, enabling them to continue to trade during construction and beyond;
- consult with residents and the wider community on the designs for the Market that were created with the traders;
- consult residents and the community on the proposals for affordable housing and the office building;
- conduct a targeted consultation, engaging with the residents living closest to the site, including through various resident and community organisations, as well as local politicians and businesses;
- explain clearly the aims behind the proposals and how they would benefit the area, exhibiting all the proposals with as much detail as available at the time;
- be honest and up front, not least about the issues that are known to be of interest to residents already;
- provide opportunities for people to express their views through various communications channels, including meetings (online and in person), in-person public exhibitions, a website showcasing the proposals, outreach via letters and flyers, and phone and email correspondence;
- ensure Yoo Capital and the project team engaged directly with the public, reflecting how committed the team is to consultation and understanding local people’s views;
- work closely with planning officers and councillors as well as the Greater London Authority, so that they are aware of the proposed development, key consultation activities and outcomes.
Alignment with Just Transition Criteria: 2 – each investment within the product is assessed to avoid harm to any of the three elements
Adherence to high-level frameworks
YCIM adheres to high-level frameworks to avoid harm to any of the three Elements. This includes implementing the Task Force on Climate-Related Financial Disclosures (TCFD) to manage climate risks, ensuring Do No Significant Harm (DNSH) compliance to uphold environmental and social safeguards, aligning with net-zero targets to mitigate climate impact. These measures ensure that all investments are evaluated to prevent adverse effects while contributing positively to the objectives of a Just Transition.
Example of a process in place to assess, monitor and engage
Yoo Capital’s ESG investment strategy focuses primarily on social impact. Our investments promote long-term positive changes in communities, support economic growth and provide space that benefits the local community by prioritising inclusivity, affordability and community well-being.
The below questions are part of the investment screening process to ensure each project aims to reduce its impact on the environment, socio-economic equity and the community. This process has an exclusion criterion, followed by a set of checklist criteria to evaluate potential developments and ensure they align with YCIM standards for sustainability, inclusivity and community benefit.
Exclusion list:
- Do the business activities or operations of the project conflict with our exclusion list: investments which focus on forced labour, slavery and prostitution, war and terrorism, money laundering, nuclear activities?
Checklist:
- Is the proposed asset designed with adaptability for future uses? Does the design support alternative uses with limited modifications?
- The forecasted returns should demonstrate the capacity to support small and independent businesses: return hurdles met with [15%] of commercial rent at a [10%] discount to market. This should be separate to statutory affordable office requirements.
- At least [10%] of total office space should be dedicated as affordable and/or [35%] of residential should be classified as affordable housing as per planning guidance.
- At least [20%] of space is dedicated to struggling sectors that have been economically impacted, such as local retail, hospitality or creative industries.
- Is there a space provision designated for free community use, which could include parks, plazas, event spaces or other public recreational facilities.
- Is there potential to deliver on needs identified in the local authority’s local plan, manifesto or industrial strategy?
- At least [1] job should be created per [£1m] invested.
Specific environmental, social and community-related safeguards
| Element 1: Climate and environmental action | Element 2: Socio-economic distribution and equity | Element 3: Community voice | |
|---|---|---|---|
| Investment strategy | GHG Emission mitigation, reduction, and removal | Inclusive opportunities for decent jobs Accessibility and affordability of projects and services | Social dialogue and stakeholder engagement |
| Disclosures | Company transition plan for reaching net zero emissions using SBTi, TCFD. Biodiversity-linked risk assessments | Diversity and Inclusion Policy Employee Handbook Social Value Policy | Social value policy |
| Indicators KPIs | Carbon emission targets set per project Exposure to energy inefficient assets | Per project: % of affordable office/housing Number of jobs |
Alignment with Just Transition Criteria: 3 – through its investments, the product makes a positive aggregate contribution to all three elements and, over time, each underlying investment contributes to all three elements
Element 1: Climate and environmental action
One of YCIM’s key pillars and part of the strategy that focuses on Element 1 is to ‘Drive decarbonisation through longevity’. This pillar revolved around driving decarbonisation and environmental impact through prioritising longevity, with the knowledge that the construction phase of a building accounts for a significant portion of emissions from the built environment. The strategy aims to decrease the embodied carbon throughout the whole life cycle of urban spaces. Some of the safeguards used to deliver this strategy over time are:
- carbon emission reporting (Scope 1, Scope 2, Scope 3);
- Greater London Authority (GLA) guidance on whole life-cycle carbon assessments;
- portfolio embodied carbon in construction;
- percentage of materials with recycled content used across portfolio.
Portfolio embodied carbon in construction
As part of Yoo Capital’s commitment to driving decarbonisation through longevity, during construction at Shepherds Bush Market, sustainable construction methods will be integrated to minimise embodied carbon. Key initiatives include:
- Reuse of demolition materials: The pile mat will incorporate crushed material from the demolished building, reducing the demand for new raw materials and lowering the projects over all carbon footprint.
- Sustainable façade design: The external façade of the residential building will feature brick slips, a more resource efficient alternative to traditional brickwork, minimising material use while maintaining durability and aesthetic quality.
- Recycled materials in fit-out: We are actively exploring the use of recycled materials in the fit-out of core spaces, ensuring that interior elements contribute to overall carbon reduction.
Element 2: Socio-economic distribution and equity
The strategy seeks to help create new job opportunities by considering the possible community benefits during the planning and design phases. This helps to understand the type of scheme the council and local community may welcome, and the socio-economic value the project can provide.
Considerations include:
- job creation – YCFII estimates the fund will support 2000 new jobs that are paid at least real living wage;
- percentage of space that is designated affordable per project – SBM is providing 100% affordable housing;
- total area available for community and public per project.
Market Academy
The SBM Academy outlines a structured and inclusive program aimed at fostering socio-economic equity through education and engagement. By providing sessions in local spaces, the initiative ensures participation from diverse community groups. The program includes educational sessions to equip participants with knowledge and skills for existing traders, new traders, or anyone interested.
Element 3: Community Voice
The strategy takes a distinctive approach, emphasising a steadfast commitment to social value through the pillar empower authentic local communities. From the very outset of the real estate development planning process, we prioritise truly understanding the communities we engage with. This ensures the creation of community-focused investments that are thoughtfully tailored to their unique needs, integrating these insights into developments that deliver meaningful, lasting impacts for the community.
Actions include:
- placed-based assessment of the existing social value of the project – measuring the sum of the environmental, economic and social outcomes or well-being attributed to the asset;
- surveys of relevant stakeholders;
- community events.
Community engagement
Shepherd’s Bush Market was sold by Transport for London in 2011 and for the next decade was subject to several failed regeneration attempts. By the time that Yoo Capital became the majority owner and landlord of the Market in September 2020, a significant amount of trust with the traders needed to be built.
Yoo Capital first met with the Shepherd’s Bush Market Tenants’ Association and market traders in July 2020, prior to purchasing the Market, to establish a basis for a working relationship. When Yoo Capital became majority owners in September 2020, the team embedded themselves with the traders, getting to know individuals, their businesses and their hopes and aspirations. In 2021, Yoo Capital used this initial basis to start developing proposals for the Market and spent the next two years consulting with the traders via one-on-one meetings, drop-in sessions and engagement with the Shepherd’s Bush Market Tenants’ Association (SBMTA). This style of consultation was unique to the Market traders. The team at Yoo Capital managed and implemented the process themselves and focused on building relationships and trust. While this was intensive, it was necessary for the success of the Market and its traders. Ahead of the planning committee in December 2023, the majority of legacy traders had submitted letters of support for the application and over 90% had agreed Heads of Terms to secure a package of support during the development process. The SBMTA spoke in support of the application at committee, as well as individual traders and local business owners.
The consultation with the wider public took a more traditional approach, with regular events both in person and online and meetings with key stakeholder groups. There was objection from a campaign group during the consultation process and Yoo Capital met with members of the group and sought to address their concerns where possible. Where this wasn’t possible and where there was misinformation, Yoo Capital was able to talk to traders, using the relationships built already, and work with them to solve problems or dispel rumours.
Consultation Stats:
- 33,000+ flyers and newsletters delivered locally
- 60+ responses on our Commonplace website
- 4 public consultations events
- 700+ people total attendance of all consultations and meetings
- 180 addresses in email database
- 100+ pieces of written feedback received at our consultation events
- 3+ meetings held with each Shepherd’s Bush Market trader (approx. 90) alongside weekly informal engagement
- 90%+ traders have agreed to HoTs