100 million+
capital value
35 year
full repairing and insuring lease
447
care beds
The client and project
With 129 care homes throughout England and Scotland, Care UK is one of the largest social care providers in the UK. The organisation launched in 1982 and works with the NHS to support key customer segments including the elderly.
Care UK had successfully built up a pipeline of development sites. It was looking to undertake a sale and leaseback of its portfolio of recent development assets and development pipeline.
Named ‘Project Sunday’, the plan centred on this mixed portfolio of six assets. It included newly developed trading care homes and a home under construction.
Our partnership
We have a longstanding relationship with Care UK which is a tenant of the Octopus Healthcare Fund. Our ongoing partnership is built on a shared commitment to providing high-quality care. This history also meant we could apply our knowledge of Care UK to its aims around Project Sunday.
With our deep understanding of the care sector, our team was able to analyse and be comfortable with the nuances of each asset. This includes the markets in which they operate and the variances they may experience as the businesses mature.
Our strong relationship with Care UK allowed us to entrust them as our operating partner to take each business to maturity. The strength of the partnership and Care UK’s reputation for exemplary standards of care provided us with the necessary security to see the care homes as a suitable addition to our portfolio.
“Project Sunday demonstrated our ability to work with an existing tenant to best understand their motivations for undertaking a sale and leaseback. It also reflects our capacity and ability to transact on a large scale in a structured and expedient manner.”
Chris Wishart, Head of Care Home Investment, Octopus Real Estate
