Octopus Real Estate has raised a further £314m for its fund focusing on UK care homes- bringing its total value over the £1 billion mark - after attracting investors from the UK, Europe and Japan.
The fund has also attracted 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 care home assets across the UK.
Octopus currently manages a portfolio of 77 purpose-built homes, including 13 properties under construction.
“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,” said Octopus Real Estate co- head of care homes Michael Toft.
Octopus Real Estate chief executive Benjamin Davis added: “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.”
CBRE Capital Advisors acted as placement agent together with Octopus Group’s in-house institutional sales team.
