Octopus Investments targets retirement rental strategy across Europe

Octopus Investments has extended its coverage into Europe, opening an office in Madrid’s financial district.

The investor, which focuses on the living and healthcare real estate sectors, is aiming to expand all its existing strategies into Spain, and across Europe, over the next two to three years, including elderly and specialist care homes, retirement living, affordable housing and real estate debt.

Its first strategy in Spain is a retirement living programme focusing on the development of schemes for rent for those aged 75-plus. The rental strategy will partner developers and operators in the sector.

It has agreed to develop a joint venture (JV) with Neinor, a residential property developer in Spain. Neinor has a multi-sector strategy, with experience in build-to-rent. The JV aims to invest an initial €200m in developing retirement rental schemes across Spain and will also run the day-to-day operations.

Ed Clough, managing director of Octopus Real Estate, has relocated to Madrid temporarily to support the office’s growth. ‘In growing our real estate business, we have looked carefully for regions where we feel our expertise will resonate, the fundamentals are supportive, and where we believe we can grow a long-term business. Spain with its strong economy, ageing population, growing housing need across all age groups, and high-quality healthcare system fits that approach,’ he said.

‘We know that having a strong local presence with an expert team is essential to our success as we look to both build long-term relationships with local Spanish partners and to deliver for our investors.’

Lieven Debruyne, executive vice chair of Octopus Investments, said: ‘We’ve seen how investors globally are increasingly adopting a thematic approach to investing, targeting strategies where underlying demand is driven by demographic trends. We’ve also seen an increasing allocation within real estate to the living sectors, as more investors seek out alternative investment opportunities.

‘So, while we are beginning our European expansion efforts in Spain and later living, we see a big opportunity in expanding our existing specialist strategies and exploring new geographies in the years to come.’