Forsters' Commercial Real Estate team advises Octopus Real Estate on one of its biggest care home portfolio purchases to date

Forsters has advised Octopus Real Estate in relation to the acquisition of eight new care homes from LNT Care Developments for an overall purchase price of over £100 million.

Octopus Real Estate, part of the Octopus Group, is a specialist real estate lender and investor, and Forsters has advised its care home team since early 2018.

This deal is one of the biggest portfolio purchases to date for the Octopus Healthcare Fund, managed by Octopus Real Estate. The Fund has committed to buy five of the care homes at practical completion and forward fund the construction of three care homes over their 12 month build period.

The care homes are purpose built by LNT Care Developments and are located around the country. At practical completion seven of the homes will be let to existing care home operator, Ideal Carehomes, and the remaining home will be let to Elmfield Care, a new ‘LNT care partnership’ operator formed by LNT in partnership with Elmfield’s Directors.

Octopus Real Estate is passionate about executing its strategy of funding the development of modern care homes to bridge the existing gap in investment in the care home market.

The deal saw Forsters’ Commercial Real Estate, Construction and Planning teams working together to advise Octopus Real Estate and was another example of Forsters’ continuing growth into the healthcare/retirement living sector.

Senior Partner Smita Edwards and Senior Associate Amy France led the Forsters team, assisted by Commercial Real Estate Senior Associates Ruth de Maupeou and Danielle Kenyon, Associate Emma Francombe, Construction Senior Associate Richard Spring and Associate Caitlin Ervine. Planning advice was given by Senior Chartered Legal Executive Lauren Archer, Senior Associate Laura Parrish and Associate Sophie Smith.