Octopus raises £133.5m for care home fund
Octopus Healthcare has raised £133.5m for its care home fund and agreed to acquire seven care homes.
CBRE advised Octopus on the fundraising. The new finance takes its the total equity raised for the fund to £320m since its launch in August 2017.
It will acquire six modern, purpose-built care homes let on long leases to Care UK for £110m. They are located in Banbury, Cheltenham, Horsham, Norwich, Ware and Witney.
Octopus Healthcare has raised £133.5m for its care home fund and agreed to acquire seven care homes.
CBRE advised Octopus on the fundraising. The new finance takes its the total equity raised for the fund to £320m since its launch in August 2017.
It will acquire six modern, purpose-built care homes let on long leases to Care UK for £110m. They are located in Banbury, Cheltenham, Horsham, Norwich, Ware and Witney.
Octopus will also forward fund the development of a new care home in the Midlands, which it said will be leased to a national operator.
Ben Penaliggon, director at Octopus Healthcare, said the new capital and finance acquisitions reflected the appeal of this asset class to investors, and the “highly supportive demographic trends” that drive it.
Penaliggon said: “We look forward to continuing to build the fund’s portfolio through a combination of standing investments, forward fundings and forward commitment acquisitions.”
Hiti Singh, head of institutional investment at Octopus, said: “The strong fundamentals of healthcare infrastructure investment, including the sustainable, inflation-linked income, risk-adjusted returns and supportive demographics, continue to attract institutional investor demand.”
The acquisitions bring the fund’s total portfolio to 26 care homes, with eight leased to Care UK. Octopus currently manages more than £1.6bn of healthcare investments across a number of platforms, with a focus on GP surgeries, care homes and retirement communities.
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