Octopus has brought its evergreen healthcare fund over the £1bn mark with a £314m raise.
The recent fundraise saw commitments from a range of new and existing institutional investors from the UK, Europe and Japan, as well as the Greater Manchester Pension Fund and 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 care homes team currently manages a portfolio of 77 modern, purpose-built homes, including 13 properties under construction.
The fundraise was the first to be completed since Octopus Healthcare Fund’s recent transition to operate as an impact fund in line with the IFC’s Impact Principles.
CBRE Capital Advisors acted as placement agent together with Octopus Group’s in-house institutional sales team.
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 £1bn mark signifies a vote of confidence in the sector.”
He added: “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.”
Michael Toft, co-head of care homes at Octopus, 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.”
Octopus Real Estate, part of Octopus Group, has more than £2bn in real assets and secured lending.
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