LGPS Central Limited has committed £58 million to the Octopus Healthcare Fund, marking its first investment in the UK care home sector and enhancing its social residential allocation.

Target Information

LGPS Central Limited (LGPSC), which serves as the investment manager for eight Local Government Pension Scheme (LGPS) funds, has recently announced a significant commitment of £58 million to the Octopus Healthcare Fund. This marks LGPSC's inaugural foray into the care home sector. Following this investment, LGPSC's allocation towards social residential properties has now reached 35% of its property portfolio, bringing total commitments to £165 million.

The Octopus Healthcare Fund, managed by Octopus Capital, is a prominent player in the UK’s care industry, owning and operating over 100 modern, purpose-built care homes nationwide. The Fund has earned a prestigious 5-star rating from GRESB for three consecutive years, a testament to its outstanding Environmental, Social, and Governance (ESG) performance.

Industry Overview

The healthcare property sector in the UK has been experiencing robust growth amid increasing demand for high-quality care facilities. Several factors drive this demand, including an aging population and