Octopus Real Estate enters specialist care market with £100m deal


Hamberley Group

Octopus Real Estate, part of Octopus Group and a leading UK specialist real estate lender and investor and The Hamberley Group, a leading healthcare operator and developer, have announced today Octopus Real Estate’s entrance into the specialist care market through an acquisition of six of Hamberley’s assets.

The assets, acquired as part of a £100 million sale and leaseback deal are focused on facilities for residents with complex care requirements, including those with acquired brain injuries.

The deal includes the purchase of the state-of-the-art Inspire Neurocare neurological rehabilitation centre in Worcester.

With this, Octopus makes its first standalone investment into the specialist healthcare sub-sector.

The 35-year deal will allow The Hamberley Group to further accelerate the growth of the Inspire Neurocare business and its luxury elderly care operator Hamberley Care Homes.

Inspire Neurocare provides rehabilitation, long-term and respite care for people living with brain and spinal cord injuries and progressive neurological conditions such as Huntington’s disease, multiple sclerosis and motor neurone disease.

The partnership between The Hamberley Group, which is backed by Patron Capital, and Octopus will also fund the construction of three new Inspire Neurocare sites in Southampton, Camberley and Basingstoke, adding much needed capacity to the UK’s complex care market.

These services will build on the success of the Inspire Neurocare Worcester service, which has set a new standard for the delivery of specialist care to individuals with some of the most complex health conditions.

The partnership will also see Octopus take ownership of Hamberley Care Homes’ first home, Caddington Grove, in Bedfordshire, and a new luxury care home to be built in Southampton, alongside the upcoming Inspire Neurocare service.

Mike Toft, Head of Care Homes at Octopus Real Estate, said:

“Entering this nascent investment sector within the healthcare real estate market was the natural next step for Octopus and our healthcare strategy.

As one of the UK’s leading specialist investors in real estate – with a focus on care homes and retirement villages – we understand the nuances of specialist care and are sensitive to resident needs and concerns.

We also have an in-house clinical assurance team that collaborates with operators to ensure the provision of quality care.

These assets in particular are the preeminent portfolio of purpose-built neuro rehabilitation facilities in the UK.

With Hamberley, we know we have a fantastic opportunity to positively disrupt the specialist care market, and improve the lives of those with neurological conditions.”

Tim Street, Director of the The Hamberley Group, said that the partnership with Octopus was key to the firms’ plans to develop its two award-winning operating businesses.

Tim said:

“We’re delighted to announce this deal today with Octopus Real Estate. The team has a deep understanding of the care sector, and this partnership will allow us to further develop both Inspire Neurocare and Hamberley Care Homes.

Both of these operators are leaders in their respective fields, and we are immensely proud of the work our teams do day in day out to support individuals living with complex care conditions and who need extra support in later life.

This funding will ensure we can expand our operational businesses and continue to offer more of the highest quality care and support to people in the local communities which we are proud to serve.”

Keith Breslauer, Managing Director of Patron Capital, said:

“This is the second major sale and leaseback transaction Hamberley have completed this month, underlining the strong investor confidence in the health and social care sectors.

Having built and sold both Gracewell Healthcare and the neurological specialist provider, Badby Park Group, we have a strong track record in developing the very highest quality healthcare properties that support and transform the lives of individuals living with some of the most complex conditions.”

The new deal will account for a total of 334 beds across Inspire Neurocare and Hamberley Care Homes.

The Hamberley Group will have a total of 28 homes (1,939 beds) by 2024, once the current pipeline of developments is complete.

Inspire Neurocare’s bespoke neurological rehabilitation facilities feature physiotherapy and medical consulting rooms together with therapy gyms fitted with state-of-the-art rehabilitation equipment including robotics and other technology assisted equipment.

The centres also include lounges, dining rooms, cinema, a café bar and self-contained step-down apartments.

In addition to the six assets within the Octopus partnership, the group has a development pipeline of sites in Cambridge, Dorking, Hindhead, Bristol, Keynsham, Cofton Hackett and Edwalton.

The Hamberley Group is also actively acquiring land and existing operating businesses and has over £170m of equity capital allocated for healthcare investment.