Octopus Capital has raised £60m for its Octopus Healthcare Fund from LGPS Central (LGPSC) and Knight Frank Investment Management.
For the past 15 years, Octopus has been directing institutional funding into the development of care homes, delivering high-quality, sustainable homes that are fit for the future. With funds now standing at £1.7bn , Octopus Healthcare Fund is now landlord of more than 100 purpose-built care homes.
£58m of the investment has come from LGPSC – the investment manager of the Local Government Pension Scheme (LGPS) funds of Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, West Midlands, and Worcestershire. The rest of the funding has come from Knight Frank Investment Management.
Michael Toft, head of care homes at Octopus Capital, said: “The UK continues to face an undersupply of quality care homes whilst demand continues to grow with our ageing population. By leveraging our expertise and importantly, with this new injection of capital, we can create more care homes to help meet this urgent need. We have a Quality Assurance Team to ensure high standards of care, and long-standing relationships with best-in-class operators, that will allow us to provide the essential infrastructure required to support our elderly across the UK today, and in the decades to come.”
Sian Roberts, head of UK institutional sales, said: “It is great to see how the Octopus Healthcare Fund is now backed by a growing group of institutional investors seeking resilient income and attractive, risk adjusted returns aligned with environmental and social outcomes. In particular, we’re really pleased to see more LGPS pool capital come into the Fund, as they begin to execute on their ‘fit for the future’ proposals. We know that these pools are increasingly looking to invest in local growth and social infrastructure, so we look forward to facilitating that through both our existing suite of products, and through creating tailor-made private market solutions.”
Mike Hardwick, investment director – property at LGPS Central Limited, added: “Our investment in the Octopus Healthcare Fund aligns with our objective to deliver resilient, inflation-linked income for our Partner Funds while contributing to critical social infrastructure across the UK. The Fund’s focus on quality care provision, strong responsible investment integration and stewardship approach made this a compelling opportunity for LGPS Central.”
