Octopus Capital has agreed a forward funding deal to deliver two new purpose-built care homes in Staffordshire and Norfolk as institutional capital continues to target long-income healthcare assets.
The investment, made via the Octopus Healthcare Fund, will support the development of a 66-bed scheme in Stafford and a 70-bed home in Taverham, near Norwich. Both sites are already under construction, with completion expected in early 2027.
The developments are being delivered by Abora Developments, part of Xanadu Care Group, and will be operated by Avery Healthcare under 35-year leases.
The deal reflects continued investor appetite for care home assets offering long-dated, inflation-linked income, particularly as demographic pressures and an ageing population drive demand for modern facilities.
SUSTAINABILITY STANDARDS
Both schemes have been designed to meet high sustainability standards, targeting EPC A ratings and BREEAM In-Use ‘Excellent’ certification. The homes will be fully electric and powered by air-source heat pumps, aligning with Octopus Capital’s target to deliver net zero care home developments by 2030.
For Octopus, the transaction also deepens its relationship with Avery Healthcare, increasing the operator’s presence within the fund to ten homes and making it the third-largest tenant.
HIGH QUALITY
Max Weitzmann, Investment Director at Octopus Capital, says: “This investment reflects our continued focus on delivering high-quality, sustainable care homes that meet the needs of an ageing population.
“These two developments will provide modern, purpose-built environments for residents, while supporting the long-term provision of care in their respective communities with an operator we rate, value and trust.
John Strowbridge, Managing Director at Abora Developments, adds: “We’re delighted to further extend our relationship with Octopus Capital to fund and operate these two energy efficient care facilities.
“At Abora, quality of life and exceptional care at the forefront of our commitment to our tenants. In Octopus Capital we have found a strong partner to deliver on this premise.”
ESSENTIAL PARTNERSHIP
Jeremy Richardson, Chief Executive Officer at Avery Healthcare, says: “These two developments represent an important addition to our portfolio, bringing high-quality, purpose-built care homes to Stafford and Taverham.
“Both schemes have been thoughtfully designed to create comfortable, modern environments that support the wellbeing of residents and staff alike.
“As demand for high-quality care continues to grow, partnerships like this are essential to ensuring we can provide the right settings and standards of care for local communities.”
