Octopus Capital has agreed a £13.4 million development loan to support the delivery of a new 70-bed residential care home in Fleet, Hampshire, in its first transaction with elderly care operator Oakland Care.

The two-year facility will fund the transformation of a brownfield site in the town into a sustainable, purpose-built care home. The scheme will incorporate air source heat pumps and photovoltaic panels to provide heating and hot water, a move designed to reduce energy bills and futureproof the property.

The deal underlines Octopus Capital’s continuing focus on social infrastructure and follows a series of investments in the care home sector across the UK. Part of Octopus Investments, the firm is a specialist lender and investor in real estate with a particular emphasis on the transition to net zero and community-based healthcare.

Jenna Hollins, investment manager – real estate debt at Octopus Capital, said: “The UK care sector faces a significant challenge due to a shortage of quality care homes and an increasing ageing population.

“To help address this, we’re lending to developers that we can trust to build care homes we would be happy for our own loved ones to live in.

“By working alongside the established and experienced team at Oakland Care — who put quality and service at the heart of their homes — we can support the delivery of care homes that are fit for the future and meet the evolving needs of society.”

Oakland Care, which delivers and operates care homes across the southeast, is acting as both developer and operator of the Fleet scheme. The group has positioned itself as a premium care provider with a focus on environmental responsibility and resident wellbeing.

Joanne Balmer, chief executive at Oakland Care, described the new home as “a bold step forward in sustainable care”.

“We are delighted to be partnering with Octopus to deliver our new 70-bed care home in Fleet — a development that represents both a strategic growth opportunity and a bold step forward in sustainable care,” she said.

“At Oakland Care, we are committed to redefining what high-quality care looks like by combining excellence in service delivery with forward-thinking environmental design. This home will incorporate advanced sustainability features that not only helps reduce environmental impact but also drives long-term operational efficiencies.

“With Octopus’s backing, we are confident in our ability to scale responsibly while delivering strong, values-led outcomes for residents.”

The financing deal was brokered by DC Advisory, with its managing director Hoong Wey Woon describing the project as a strong example of quality real estate and care coming together.

“I am delighted to have advised Oakland Care on its latest debt raise. Oakland Care exemplifies high quality care and real estate. In partnering with Octopus Capital, it is primed for continued success,” he said.