Octopus Healthcare has completed an initial fundraise of £82 million ($107 million) for its Octopus Healthcare Fund (formally known as MedicX Healthfund I) following its conversion to a perpetual life vehicle.
The move to an evergreen structure comes in response to increasing investor appetite for healthcare real estate assets driven by stable, long-term, RPI-linked income streams and favorable pricing relative to alternative sectors. In addition, changing demographic trends and a desire for better standards of care are driving user demand for assets of this kind.
The fund is focused on U.K. elderly care homes. It also has the ability to invest in specialist healthcare facilities.
“Institutions are increasingly looking at opportunities in the healthcare real estate market as the risk profile, duration and potential returns of these assets are perfectly suited to their matching requirements,” said Ben Penaliggon, senior fund manager of Octopus Healthcare Fund. “The Octopus Healthcare Fund will allow us to provide investors with long-term exposure to the U.K. healthcare sector via an established specialist platform focused on U.K. healthcare real estate.”
The fund currently has a seed portfolio of approximately £124 million ($162 million), acquired or forward funded by Octopus Healthcare since 2010.
