Octopus Capital announces European strategy launch

We are pleased to announce today, that we have extended our tentacles into Europe for the first time in our 24-year history.

Octopus Capital Spain have opened a new office, located on Paseo de la Castellana in Madrid’s financial district. The office represents the first permanent location for the Octopus Group in mainland Europe, as we look to build a more global footprint and expand our existing investment capabilities.

Octopus is principally focussed on the living and healthcare real estate sectors and are aiming to expand all of our existing strategies into Spain, and across Europe, over the next two to three years, including elderly and specialist care homes, retirement living, affordable housing and real estate debt.

Our first strategy to include deployment in Spain is a new European value-add retirement living strategy focusing on the development of later living schemes exclusively for rent for those aged 75+. The Octopus retirement living team is widely recognised as one of the leading investors in the UK later living sector. The new retirement rental strategy will adopt the same hands-on approach, partnering with best-in-class developers and collectively growing high quality operators in this nascent sector.

As part of the strategy, we have agreed to develop a joint venture (JV) with Neinor, the leading residential property developer in Spain with a 30-year track record. Neinor has a multi-sector strategy in Spain, with significant experience in build-to-rent strategies. The JV aims to invest an initial €200 million in developing retirement rental schemes across Spain and will also run the day-to-day operations.

Ed Clough, Managing Director of Octopus Real Estate, part of Octopus Capital, has relocated to Madrid temporarily to support the office’s early growth.

“In growing our real estate business, we have looked carefully for regions where we feel our expertise will resonate, the fundamentals are supportive, and where we believe we can grow a long-term business. Spain with its strong economy, ageing population, growing housing need across all age groups, and high-quality healthcare system fits that approach.

We know that having a strong local presence with an expert team is essential to our success as we look to both build long-term relationships with local Spanish partners and to deliver for our investors.”

Ed Clough, Head of Real Estate at Octopus Capital

“We’ve seen how investors globally are increasingly adopting a thematic approach to investing, targeting strategies where underlying demand is driven by demographic trends. We’ve also seen an increasing allocation within real estate to the living sectors, as more investors seek out alternative investment opportunities.

So, while we are beginning our European expansion efforts in Spain and later living, we see a big opportunity in expanding our existing specialist strategies and exploring new geographies in the years to come.”

Lieven Debruyne, CEO at Octopus Capital