Octopus Healthcare has raised a further 拢133.5m (鈧�150.8m) for its healthcare fund and has added seven care homes to the fund鈥檚 portfolio.
Octopus Healthcare Fund has received additional capital from new and existing institutional investors, takes the total equity raised for the Fund to 拢320m, the manager said.
The specialist UK and Ireland healthcare real estate investor launched the fund in August 2017.
Octopus said the fund has agreed to buy a portfolio of six, purpose-built care homes let on long leases to Care UK, for 拢110m. The assets are located in Banbury, Cheltenham, Horsham, Norwich, Ware and Witney.
The fund has also agreed to forward fund the development of a new elderly care home in the Midlands to be leased to a national operator.
Octopus said these acquisitions will take the fund鈥檚 total portfolio to 26 care homes.
Ben Penaliggon, a director at Octopus Healthcare, said: 鈥淭his 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.
鈥淭his marked the end of a successful year for the fund, during which it has secured over 拢279m of transactions into the UK elderly care home sector and we look forward to continuing to build the fund鈥檚 portfolio through a combination of standing investments, forward fundings and forward commitment acquisitions.鈥�
Hiti Singh, the head of institutional investment at Octopus, said: 鈥淭he strong fundamentals of healthcare infrastructure investment, including the sustainable, inflation-linked income, risk-adjusted returns and supportive demographics, continue to attract institutional investor demand.
Singh said 45% of investors in the company鈥檚 recent Healthcare Infrastructure survey indicated that they lack the investor skills and resources to invest in this asset class.
鈥淭his creates an opportunity for us to build on our long-standing track record in this area and unlock an opportunity for investors who have an appetite to increase their allocations in healthcare infrastructure.鈥�
