Octopus Capital has secured a forward funding agreement to develop two care homes in Staffordshire and Norfolk, totalling 136 beds across the two facilities. The transaction was completed through the firm’s Octopus Healthcare Fund, which invests in care home developments across the UK.
The homes are being developed by Abora Developments, part of Xanadu Care Group, with Avery Healthcare set to operate both facilities under 35-year lease agreements. The Stafford site will provide 66 beds, while the Taverham facility near Norwich will accommodate 70 residents.
Construction timeline and sustainability targets
Both developments broke ground in 2025 and are scheduled to reach practical completion in early 2027. The schemes have been designed to achieve an EPC A rating and BREEAM In-Use ‘Excellent’ certification. Both facilities will be fully electric and powered by air-source heat pumps, aligning with Octopus Capital’s stated objective of delivering net zero care home developments by 2030.
The deal expands Octopus Capital’s relationship with Avery Healthcare, bringing the total number of Avery-operated homes within the fund to ten. This makes Avery the fund’s third-largest tenant by property count.
Market context
The care home sector continues to attract institutional investment as demand for purpose-built facilities grows alongside the UK’s ageing population. The forward funding model provides developers with capital certainty while offering investors long-term income through lease agreements with established operators.
Max Weitzmann, investment director at Octopus Capital, said the investment reflects a focus on delivering sustainable care homes that meet demographic needs. John Strowbridge, managing director at Abora Developments, described the deal as an extension of an existing relationship with Octopus Capital.
Jeremy Richardson, chief executive at Avery Healthcare, noted that both developments would address growing local demand for care provision. The announcement comes as the UK property market faces broader challenges, though specialist sectors such as healthcare continue to attract investment interest.
The transaction represents a continuation of forward funding activity in the care home sector, with institutional capital increasingly directed towards assets offering stable, long-term income streams. While property valuations face increased scrutiny across the market, purpose-built care facilities remain a focus for investors seeking exposure to demographic-driven demand.
