Funding / Real Estate
INVESTING Individual Investor Financial Adviser Institutional Investor FUNDING Entrepreneur Real Estate
Care Homes Reading time: 2 mins

Octopus Real Estate purchases LNT care home portfolio for over £100 million

15 Dec 2020 By Jayne Shawcross

Octopus Real Estate, part of Octopus Group and a leading UK specialist real estate lender and investor, has announced the completion of a major portfolio deal to acquire eight new care homes from leading care home developer, LNT Care Developments, for over £100 million.

Octopus Healthcare Fund, managed by Octopus Real Estate, has committed to acquire five of the care homes at practical completion and will forward fund construction of the remaining three homes over their 12-month build periods. The deal is one of the biggest portfolio purchases to date for the Octopus Healthcare Fund.

The eight new care homes are located in Wombourne, Nottingham, Wakefield, Cannock, Kidderminster, Swadlincote, Redditch and Salisbury, and will all provide full en-suite wetrooms and best-in-class facilities. Once complete, seven care homes will be let to Ideal Carehomes and one to Elmfield Care, each on a 35-year lease.  Ideal Carehomes is an existing Octopus Real Estate tenant, while Elmfield is a new ‘LNT care partnership’ operator formed by LNT with Elmfield’s Directors.

Octopus Real Estate is committed to growing its portfolio of over 65 modern purpose-built care homes across the UK, addressing the growing need for high-quality real estate that supports the health and wellbeing of the UK’s ageing population.

Knight Frank acted as selling agent for LNT Care Developments.

Chris Wishart, Director of Origination, Octopus Real Estate, commented: “This portfolio acquisition is an exciting project for Octopus Real Estate which will deliver high quality care homes to eight communities across the UK. The sector still requires significant further investment given the UK’s ageing population, and we continue in our work to bridge that gap.

“We are pleased to be working again with LNT, a developer with specialist knowledge in the sector, and of course with Ideal Carehomes, an experienced quality operator. Extending our relationship with both parties, in addition to Elmfield Care, is a key step in executing our strategy of funding modern care homes with robust fundamentals.”

Dermot Callinan, Group Director of LNT Care Developments, commented: “We pride ourselves on using the LNT Way to find the best sites with continuously evolving build design to create efficiencies in the operational model which in turn ensures high levels of profitability and regulatory compliance as well as a homely quality care environment. We are pleased to have worked with Octopus Real Estate on a successful outcome and look forward to continuing our strong track record of care home development with a substantial number of sites in the pipeline.”

Nick Kempster, Healthcare Agency and Development, Knight Frank, commented: “We are seeing an increased flight to quality from operators and investors within the elderly care sector, particularly as the pandemic has highlighted the undersupply of future-proofed assets and the need for further development within the sector. LNT lead the way in providing top-of-the-range facilities and innovation with their developments, and we were pleased to advise them on the sale of the portfolio and facilitate a successful outcome for both vendor and purchaser.”

Related articles

Ground-breaking Ceremony at Brendoncare St Giles View
1 Jul 2021

Ground-breaking Ceremony at Brendoncare St Giles View

Benjamin Davis & Michael Toft from the Octopus team recently attended the ground-breaking ceremony to mark the new care home construction of Bredoncare St Giles View in Winchester. It has been custom designed by our healthcare development team for The Brendoncare Foundation who will lease and operate the new home.
PIC invests £200 million in the UK retirement villages joint ventures with Octopus Real Estate
12 Jul 2022

PIC invests £200 million in the UK retirement villages joint ventures with Octopus Real Estate

Pension Insurance Corporation plc (‘PIC’), a specialist insurer of defined benefit pension schemes, today announces it is making a £200m equity investment to fund the development and operation of around 10 new retirement communities across the country. The Fund, Senior Living Investment Partners, is a joint venture between PIC and leading specialist real estate lender and investor, Octopus Real Estate
Our new partnership with Homes England, Greener Homes Alliance
21 Oct 2021

Our new partnership with Homes England, Greener Homes Alliance

Octopus Real Estate have partnered with Homes England, the Government’s housing delivery agency, to create the Greener Homes Alliance. The new Alliance commits £175 million, providing both loan finance and expert support to SME housebuilders, enabling them to build more high quality, energy efficient homes throughout England.