Octopus Real Estate Reading time: 3 mins

Octopus UK care home strategy surpasses £1bn mark as it raises further £314m from leading institutions

28 Jul 2021
  • Latest fundraise sees Octopus’ UK care home fund grow to over £1 billion
  • Raise driven by continued strong demand for assets in the sector from global institutions & pension schemes, including Greater Manchester Pension Fund & Brunel Pension Partnership

Octopus Real Estate, a leading UK specialist real estate lender and investor, has today announced that it has successfully raised a further £314 million for its fund focusing on UK care homes, bringing the market-leading Fund’s total value over the £1 billion mark.

The recent fundraise, spanning the March and June 2021 quarterly subscription windows, saw commitments from a range of new and existing institutional investors from the UK, Europe and Japan. The fund has also attracted significant interest from local government pension schemes in the UK, with investments from Greater Manchester Pension Fund and schemes investing via the Brunel Pension Partnership pool. The proceeds will be invested in a pipeline of high-quality care home assets across the UK.

Octopus Real Estate’s market-leading care homes team currently manages a portfolio of 77 modern, purpose-built homes, including 13 properties under construction. As well as an in-house development team, Octopus Real Estate has a clinical assurance team which ensures that care home operators provide the highest standards of care.

This fundraise is the first to be completed since Octopus’s care homes fund recently transition to operate as an impact fund in line with the IFC’s Impact Principles. This places a commitment to create a positive social impact by tackling the chronic undersupply of quality care home beds in the UK, at the heart of the fund’s activities. Octopus Real Estate is a substantial contributor to the UK’s care home sector, having funded 30% of all new quality care beds delivered in the UK in Q1 2021.

CBRE Capital Advisors acted as placement agent together with Octopus Group’s in-house institutional sales team.

Michael Toft, Co-Head of Care Homes at Octopus Real Estate, said:

“The UK continues to face a severe undersupply of quality care homes. Institutional capital has an opportunity to play a significant role in answering that need, while benefitting from the stable returns the sector offers. We’re pleased that institutions and pension funds continue to recognise the strong performance of the sector at such a crucial time, and are engaging with our commitment to deliver real impact that drives positive change in the care sector.”

Benjamin Davis, CEO of Octopus Real Estate, said:

“This latest fundraise is testament to the growing institutional appetite from across the world for assets in the UK care home sector. Exceeding the £1 billion mark signifies a vote of confidence in the sector, and the expertise that Mike and the wider care home team bring to the table. This is a scalable strategy with huge growth potential, and we look forward to deploying this capital and continuing to provide new, best in class care homes across the UK.”

Octopus Real Estate, part of Octopus Group, has over £2 billion in real assets and secured lending, with a highly experienced specialist team of over 80 professionals.

-Ends-

For journalists in their professional capacity only. Personal opinions may change and should not be seen as advice or a recommendation. Octopus Real Estate is the trading name of Octopus Investments Ltd (Reg No 03942880), Bridgeco Ltd (Reg No 6629989), Fern Trading Group Ltd (Reg No 6447318), Nino Ltd (Reg No 9015082), Octopus Healthcare Development Ltd (Reg No 03788979), ORE Lending Ltd (Reg No 12908588) and Octopus Co-Lend Ltd (Reg No 8913299), all registered in England & Wales at: 33 Holborn, London, EC1N 2HT, and Octopus Real Estate S.ar.l. (Reg No B189290) registered in Luxembourg at: 412F, Route d’Esch, Grand Duchy of Luxembourg, 2086, Luxembourg. Octopus Investments Ltd and Octopus Co-Lend Ltd are authorised and regulated by the Financial Conduct Authority. Issued by Octopus Real Estate. Issued July 2021.

Follow