Real estate investor Octopus Capital has agreed a forward funding deal to support the delivery of two new purpose-built care homes.

The homes will provide a total of 136 beds, comprising a 66-bed home in Stafford and a 70-bed home in Taverham, Norfolk. Both schemes are under construction, having commenced last year, and are on track to reach practical completion early next year.

Both homes are targeting EPC A ratings and BREEAM In-Use ‘Excellent’ certification. The schemes will be fully electric and powered by air-source heat pumps.

The investment has been made through the Octopus Healthcare Fund (OHF), which invests long-term capital into care homes across the UK.

The developments are being delivered in partnership with Abora Developments, part of Xanadu Care Group, with the homes to be let to care home provider Avery Healthcare on 35-year leases, providing long-term, stable income to OHF’s investors.

This transaction increases the number of Avery homes within OHF to 10, making the company the fund’s third-largest tenant.

Max Weitzmann, investment director at Octopus Capital, said: “This investment reflects our continued focus on delivering high-quality, sustainable care homes that meet the needs of an ageing population. These two developments will provide modern, purpose-built environments for residents, while supporting the long-term provision of care in their respective communities with an operator we rate, value and trust.

“We are pleased to further strengthen our partnership with Avery Healthcare, and this transaction builds on a strong track record of working together to deliver and operate high-quality homes. We look forward to continuing to grow this relationship as we expand the portfolio.”

John Strowbridge, managing director at Abora Developments, added: “We’re delighted to further extend our relationship with Octopus Capital to fund and operate these two energy-efficient care facilities. At Abora, quality of life and exceptional care at the forefront of our commitment to our tenants. In Octopus Capital we have found a strong partner to deliver on this premise.”

Jeremy Richardson, chief executive at Avery Healthcare, commented: “These two developments represent an important addition to our portfolio, bringing high-quality, purpose-built care homes to Stafford and Taverham. Both schemes have been thoughtfully designed to create comfortable, modern environments that support the wellbeing of residents and staff alike. As demand for high-quality care continues to grow, partnerships like this are essential to ensuring we can provide the right settings and standards of care for local communities.”