Octopus Capital Invests in New Care Homes in Staffordshire and Norfolk

Octopus Capital, a prominent specialist real estate investor in the UK, has finalised a forward funding agreement to facilitate the construction of two new purpose-built care homes located in Staffordshire and Norfolk. This investment is being made through the Octopus Healthcare Fund (OHF), which focuses on long-term capital investments in modern, high-quality care facilities throughout the UK.

The developments are in collaboration with Abora Developments, a subsidiary of Xanadu Care Group, and will be operated by Avery Healthcare, one of the leading providers of care homes in the UK. Upon completion, the two facilities will offer a total of 136 beds, consisting of a 66-bed home in Stafford and a 70-bed home in Taverham, situated just outside Norwich.

Construction on both projects began in 2025, and they are expected to reach practical completion by early 2027. The homes are designed to adhere to high sustainability standards, aligning with Octopus Capital’s goal of achieving net zero in new care home developments by 2030. Both facilities are aiming for EPC A ratings and BREEAM In-Use ‘Excellent’ certification.

In terms of energy efficiency, the homes will be fully electric and utilise air-source heat pumps, which will contribute to lower carbon emissions and enhanced energy efficiency over time. The properties will be leased to Avery Healthcare on 35-year agreements, ensuring a stable, long-term income stream for investors in the OHF.

This transaction further solidifies Octopus Capital’s enduring partnership with Avery, increasing the number of homes operated by Avery within the OHF to ten, making them the third-largest tenant of the Fund.

Max Weitzmann, Investment Director at Octopus Capital, stated: “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.”

Weitzmann added: “We are pleased to further strengthen our partnership with Avery Healthcare, and this transaction builds on a strong track record of working together to deliver and operate high-quality homes. We look forward to continuing to grow this relationship as we expand the portfolio.”

John Strowbridge, Managing Director at Abora Developments, remarked: “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 are at the forefront of our commitment to our tenants. In Octopus Capital, we have found a strong partner to deliver on this premise.”

Jeremy Richardson, CEO at Avery Healthcare, commented: “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.”