The back-to-back facilities provided to Connaught Care last month will finance the construction of one care home in Chichester, West Sussex, and the other in Bishops Stortford, Hertfordshire.

Each home will have associated amenity spaces and 80 beds with each bedroom including an ensuite wet room.

Octopus has previously financed the development of Portsdown View — a care home in Bedhampton — which recently opened and welcomed new residents.

The development lending team at Octopus has primarily focused on supporting residential and student accommodation sector borrowers, but these latest care home development loans represent an expansion of the team’s debt product offering within the residential sector.

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Nick White, head of development origination at Octopus, said: “Our  investment team already manages over £1.8bn of investments with a focus on care homes and retirement communities.

“We’ve been looking into fully committing to the debt space in these markets for some time now; we know the demand is there for us to expand our offering further and provide a more joined-up approach for all our customers.

“These loans demonstrate our commitment to funding a diverse development portfolio within the later living sector, and [this] partnership represents a shared vision to transform care homes into spaces where residents can thrive.”
Seamus Halton, chairman at Connaught Care, also commented: “We are thrilled to deepen our ties with Octopus Real Estate with these two deals.

“We are committed to creating a new generation of care homes that set new standards in service.

“Our experience combined with Octopus’s track record in this specialist sector mean we are confident that these new care homes will serve as a testament to that commitment."