Octopus Capital provides £13.4 million loan to leading care home operator

Octopus Capital, part of Octopus Investments and a leading UK specialist real estate lender and investor, has provided a £13.4 million lending facility to support the development of a residential care home in Fleet, Hampshire.

The development loan provided to Oakland Care, a high-quality elderly care operator and end-to-end developer across the southeast of England, will finance the development of a brownfield site to create a 70-bed care home over the next two years.

“The UK care sector faces a significant challenge due to a shortage of quality care homes and an increasing ageing population. To help address this, we’re lending to developers that we can trust to build care homes we would be happy for our own loved ones to live in. By working alongside the established and experienced team at Oakland Care – who put quality and service at the heart of their homes – we can support the delivery of care homes that are fit for the future and meet the evolving needs of society.”

Jenna Hollins, Investment Manager – Real Estate Debt at Octopus Capital

The development will combine PV panels and air source heat pumps to create an effective heating and hot water solution, creating a sustainable property that is fit for the future, whilst driving bills down for the operator.

This is the first lending agreement between Octopus Capital and Oakland Care, with DC Advisory acting as broker.

“We are delighted to be partnering with Octopus to deliver our new 70-bed care home in Fleet — a development that represents both a strategic growth opportunity and a bold step forward in sustainable care. At Oakland Care, we are committed to redefining what high-quality care looks like by combining excellence in service delivery with forward-thinking environmental design. This home will incorporate advanced sustainability features that not only helps reduce environmental impact but also drives long-term operational efficiencies. With Octopus’s backing, we are confident in our ability to scale responsibly while delivering strong, values-led outcomes for residents.”

Joanne Balmer, CEO at Oakland Care

Outside of lending, Octopus Capital is a landlord of quality care homes, with the £1.5 billion Octopus Healthcare Strategy now having over 100 modern, sustainable homes in its portfolio, providing over 7,500 care beds.

“I am delighted to have advised Oakland Care on its latest debt raise. Oakland Care exemplifies high quality care and real estate. In partnering with Octopus Capital, it is primed for continued success.”

Hoong Wey Woon, Managing Director at DC Advisory