LGPS Central Makes Strategic Move in Care Home Investments
In a significant step towards enhancing social infrastructure, LGPS Central has committed £58 million to the Octopus Healthcare Fund, marking its first foray into the care home sector. This investment not only elevates LGPS Central's total assets under management to an impressive £1.7 billion but is also poised to redefine the landscape of responsible investment in the UK.
Understanding the Octopus Healthcare Fund
The Octopus Healthcare Fund, launched in 2017, focuses on sustainable investment in care homes. As of now, the fund manages approximately £1.7 billion, owning over 100 purpose-built care homes equipped with more than 7,500 care beds. With an impressive track record, it has been delivering an 8.3% return on investment, slightly above its target range. Its efforts in ensuring quality care intertwine with sustainable practices, utilizing low-carbon energy and energy-efficient construction.
Why This Investment Matters
The investment by LGPS Central aligns with broader objectives within local government pension schemes to foster community-oriented funding. With increasing encouragement from government-led initiatives to direct funds towards social issues and local growth, LGPS Central's choice exemplifies a proactive approach to responsible investing.
Investment Direction and Future Trends
Mike Hardwick, Investment Director at LGPSC, emphasizes the necessity of investing in sectors that deliver resilient income streams while effectively contributing to social well-being. The care home market has been bolstered by recent improvements in standards and regulations, making it an attractive opportunity for institutional investors. Hardwick notes that this sector not only offers defensive investment characteristics but also plays a crucial role in enhancing community welfare.
Insights on Care Home Investment Viability
The viability of care home investments has evolved thanks to enhancements in facility quality and regulations. These improvements provide institutional investors with greater confidence, as they enable a more transparent and reliable framework for investment. Both Hardwick and Sian Roberts from Octopus Capital highlight the opportunities for pension pools to direct capital towards local innovations in social infrastructure, aligning with the principles of responsible and impactful investment.
Conclusion: Join the Conversation on Property Investment
Investments like the one made by LGPS Central are not merely financial transactions; they are opportunities to improve the quality of life in communities across the UK. By participating in the conversation and exploring investment properties in Newcastle and beyond, individuals can make informed decisions that resonate with both their financial goals and community impact. Subscribe to Property Newcastle today and stay ahead with the latest trends, news, and expert advice delivered straight to your inbox.
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