LGPS Central invests £58m in care homes
Author: Tom Parker | Published: October 28, 2025
LGPS Central has committed £58m to the Octopus Healthcare Fund, marking its first investment in the care home sector.
Knight Frank Investment Management also invested just under £2m in the fund alongside LGPS Central.
This investment brings LGPS Central’s social residential allocation to 35% of its property portfolio, with total commitments now standing at £165m.
The Octopus Healthcare Fund, launched in 2017, currently has £1.7bn in assets under management, and is landlord to more than 100 care homes across the UK.
Octopus Capital’s head of care homes Michael Toft said: “The UK continues to face an undersupply of quality care homes whilst demand continues to grow with our ageing population. By leveraging our expertise and importantly, with this new injection of capital, we can create more care homes to help meet this urgent need.
“We have a quality assurance team to ensure high standards of care, and long-standing relationships with best-in-class operators, that will allow us to provide the essential infrastructure required to support our elderly across the UK today, and in the decades to come.”
LGPS Central’s investment director for property Mike Hardwick added: “Our investment in the Octopus Healthcare Fund aligns with our objective to deliver resilient, inflation-linked income for our partner funds while contributing to critical social infrastructure across the UK.
“The fund’s focus on quality care provision, strong responsible investment integration and stewardship approach made this a compelling opportunity for LGPS Central.
“This commitment takes us to our target weighting in the social sub-sector of residential property. The fund’s stable, inflation-linked income streams offer strong alignment with our partner funds’ objectives for long-term, resilient returns. At the same time, the investment supports critical social infrastructure by providing modern, energy-efficient accommodation for older residents and creating employment in local communities.
“Octopus stood out for its deep engagement with care operators and its integration of nursing professionals in the investment process, giving us confidence that patient care remains at the heart of the model.”
