Octopus Group today announced that it is merging two of its businesses, Octopus Healthcare and Octopus Property, to support plans for future expansion.
The new entity, Octopus Real Estate, will have £2bn of funds under management and will be led by Benjamin Davis, the current CEO of Octopus Healthcare.
The move follows the termination of Octopus Healthcare’s contract to run specialist healthcare REIT MedicX after its all-share merger with PHP earlier this year. Octopus received a £10m termination fee when the management contract for the MedicX portfolio was transferred to PHP fund manager Nexus in March.
Davis said that consolidating Octopus’ investment and development expertise in one entity would put the company in an ‘even stronger position’ to continue expansion in the real estate sector and that its current real estate product range and fund offers would not be affected by the merger.
‘Our existing customers and investors will continue to receive the same service from us, and their day-to-day interactions with the combined team will remain unchanged,’ he added.
As part of the merger, current Octopus Property CEO Mario Berti will be leaving the company.