Octopus Healthcare, part of the Octopus Group and a leading investor in healthcare facilities throughout the UK and Ireland, has announced that it has raised a further £133.5 million for its Octopus Healthcare Fund and has also agreed to acquire seven care homes.
Octopus Healthcare Fund has agreed to acquire a portfolio of six modern, purpose-built care homes let on long leases to Care UK for approximately £110 million.
The assets are located in Banbury, Cheltenham, Horsham, Norwich, Ware and Witney. This acquisition builds on Octopus Healthcare’s existing partnership with Care UK, which now encompasses a total of eight care homes across the UK.
Care UK was represented by CBRE throughout the transaction. In addition, the Octopus Healthcare Fund has agreed to forward fund the development of a new elderly care home in the Midlands to be leased to a national operator.
All seven assets have been designed to provide best-in-class support and care for the elderly in locations where there is strong demand for beds. These acquisitions will take the fund’s total portfolio to 26 care homes.
Ben Penaliggon, director at Octopus Healthcare, comments: “This significant new capital raise for the Octopus Healthcare Fund and the acquisitions we have announced today are a strong endorsement of both our ability to source and acquire high quality UK care homes, of the appeal of this asset class to investors, and the highly supportive demographic trends that drive it.
"This marked the end of a successful year for the fund, during which it has secured over £279 million of transactions into the UK elderly care home sector and we look forward to continuing to build the fund’s portfolio through a combination of standing investments, forward fundings and forward commitment acquisitions.”
