Octopus Healthcare builds on Care UK partnership with £110m deal

Ben Penaliggon

Octopus Healthcare, part of the Octopus Group, has built on its partnership with Care UK with the purchase of six purpose-built care homes.

The homes in Banbury, Cheltenham, Horsham, Norwich, Ware and Witney will be let on long leases to Care UK in a deal worth £110m. Following the agreement, in which Care UK was represented by CBRE, the partnership now encompasses eight homes.

The Octopus Healthcare Fund also announced that it has agreed to forward fund the development of an elderly care home in the Midlands to lease to a national operator. The acquisitions take the fund’s total portfolio to 26 care homes.

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Octopus Healthcare also announced the raising of a further £133.5m for its fund. The fundraising takes its total equity to £320m since launch in August 2017.

Ben Penaliggon, Director at Octopus Healthcare, said: “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 £279m 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.”

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