Alternatives investor Octopus Healthcare has raised around £58 mln (€66 mln) from institutional investors, the company has announced.
The capital is to be ploughed into the care home sector in the UK, which is currently attracting high interest from investors, a company representative told PropertyEU. Demand for residential facilities for the elderly is growing due to an ageing population, but there is a real estate supply shortage in the market.
Welcoming the funding from new and existing investors, Ben Penaliggon, director of Octopus Healthcare, said: ‘At a time when some sectors are experiencing challenges and uncertainty, healthcare continues to attract institutional investment. Octopus Healthcare continues to build strong partnerships within the care home sector, driven by a commitment to creating the exceptional healthcare facilities this demographic of society needs.’
Hiti Singh, head of institutional investment at Octopus, said: ‘Institutional investors are increasingly looking for alternative asset classes to expand or diversify their portfolios. Healthcare real estate offers a compelling combination of attractive fundamentals driven by an ageing population and long-term income, together with the social benefit of providing first class and modern accommodation for elderly people needing care.’
Octopus Healthcare has racked up €308 mln of transactions in the UK elderly care home sector in the last 12 months, via a mix of standing investments, forward fundings and forward commitment acquisitions. Octopus group - of which Healthcare is part - controls a total of €8.8 bn funds under management, including €1.96 bn of institutional funds.
