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Octopus Healthcare raises over £58m from institutional investors for healthcare infrastructure real estate

23 Apr 2019 By Jayne Shawcross

The fundraise comes on the back of increased demand for healthcare real estate assets from pension funds, insurance funds and multi-managers.

Octopus Healthcare, a leading specialist UK healthcare real estate investor, today announced that it had successfully raised £58.8m on the back of growing demand from institutional investors for the asset class. The fundraise saw investment from both new and existing institutional investors.

Ben Penaliggon, Director at Octopus Healthcare, said: “At a time when some sectors are experiencing challenges and uncertainty, healthcare continues to attract institutional investment. The care home sector has strong market fundamentals, due to the growing demands of an ageing population against the backdrop of a shortage of quality real estate. 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”.

 The team behind the fundraise has a 15-year track record investing in healthcare real estate. Octopus Healthcare has secured over £267m of transactions into the UK elderly care home sector over the last 12 months, through a combination of standing investments, forward fundings and forward commitment acquisitions. In addition to UK care homes, Octopus Healthcare can invest in specialist healthcare facilities.

As well as an in-house development team, Octopus Healthcare also has a Clinical Assurance team which provides its tenants with access to the latest regulatory information and best practices.

Octopus Group currently manages more than £1.7bn of institutional funds, from a total of more than £7.7bn in funds under management.

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