Octopus Healthcare raises £187m for U.K. healthcare fund

Octopus Healthcare, a specialist U.K. healthcare real estate investor, has raised £187 million ($242 million) for its latest U.K. healthcare fund, Octopus Healthcare Fund.

The fund invests in modern healthcare homes throughout the United Kingdom. The originally closed-end fund, which launched in 2010, converted into an open-end vehicle in 2017.

The fundraising comes on the back of growing demand from institutional investors for the healthcare asset class. Ben Penaliggon, director at Octopus Healthcare, said, “With the population of the over 85s expected to grow by 64 percent to 2.6 million by 2031, the United Kingdom is facing a severe shortage of suitable housing for the elderly. There is demand for modern, high-quality care homes in the United Kingdom, yet supply is limited. There is a huge opportunity for institutional investors to invest in this growing market and provide the capital needed to create suitable accommodation for the ageing population, while benefiting from the long-term, inflation-linked income that the sector offers.”