Real estate investor funds two care home developments as part of latest push into later living market
Octopus Real Estate has entered into a ‘long-term partnership’ with operator Anavo to fund the development of care homes for older people.
The real estate investor has this week announced it is forward funding a 66-bed care home in Lancing, West Sussex, due to open in early 2024. Octopus will provide £15m of funding for the scheme, which will be developed and then operated by Anavo under a lease arrangement.
Octopus has also acquired an existing 60-bed care home in Warrington from care home developer Safe as Houses, which will also be leased to Anavo under the agreement.
It is expected that Octopus will fund further schemes through the Anavo partnership.
Octopus Real Estate is part of the Octopus Group which manages around £12.5bn on behalf of retail and institutional investors.
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It manages £1.4bn of investment in care homes and retirement communities.
It also has a separate team looking to invest around £1bn into the affordable housing sector within five years, after acquiring small ‘for-profit’ housing association Rex Housing earlier this year.
Under its affordable housing model, Octopus Real Estate forward purchases homes in the pipelines of established housing associations and retain ownership of the stock long-term, letting the property direct to the residents. The stock however will be managed by other housing associations through contracts.
Chris Wishart, care home origination director at Octopus Real Estate, said: ”“Anavo Group is a highly regarded operator in the UK care sector, so we are delighted to work alongside them on these two care homes, and to enter into what will no doubt be a successful long-term partnership”.
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