Octopus funds two UK care homes with £30m forward deal

Octopus Capital has agreed a £30m forward funding package with developer Synergy Care Developments to build two new, purpose-built care homes in England — one in Radcliffe, Nottinghamshire and the other in Peterborough, Cambridgeshire. The pair will deliver a combined 152 beds and are earmarked for operation by Acacia Care.

The scheme is being acquired on behalf of the manager’s healthcare vehicle, the Octopus Healthcare Fund (OHF). Both assets will be let on long-dated, institutional-style terms — 35-year fully repairing and insuring leases with index-linked rent mechanisms — a structure that transfers operational and inflation risk to the operator while giving investors predictable, inflation-protected income.

Max Weitzmann, Investment Director at Octopus Capital, said the tie-up with Synergy Care cements a growing development pipeline and opens the door for further collaborations. The deal follows earlier completions in Hunstanton and New Lubbesthorpe and adds to a home under construction in Burton-upon-Trent due in early 2026.

Acacia Care’s Managing Director, Jay Patel, described the homes as examples of a standards-led approach to care provision, highlighting private rooms, modern design and operational intent to deliver dignified environments for residents. For operators, long leases and forward funding mitigate development risk and improve scale economics.

The transaction arrives as OHF attracted fresh capital in October, raising just under £60m from institutional investors including a large Local Government Pension Scheme pool and a specialist property investment manager. Around £58m of that commitment was allocated via the pooled LGPS investment vehicle, moving the pool’s social residential allocation to 35% of its property holdings and increasing its commitments in the sector to £165m.

Octopus Healthcare Fund now oversees about £1.7bn of assets as landlord to more than 100 modern, purpose-built homes, representing in excess of 7,500 care beds. That scale is increasingly attractive to institutional investors seeking long-duration, inflation-linked cashflow and social-impact exposure.

For institutional allocators, the deal reinforces a wider shift: pension pools and asset managers are directing more capital into social infrastructure where stable, inflation-adjusted returns align with long-term liabilities. The Octopus–Synergy pipeline is likely to be watched closely as a model for future private capital deployment into care real estate.