Octopus Investments, a UK residential and senior living investor with a cumulative investment of approximately £2 billion in 18 developments since 2010, has announced its expansion into Europe through the establishment of Octopus Investments España.
The new Octopus Investments España office has opened on Paseo de la Castellana in Madrid's financial district, marking the company's first permanent location on the European continent. This expansion is part of Octopus' strategy to increase its global presence and diversify its investment capabilities.
In Europe, Octopus Investments will focus on the living and healthcare segments, which include retirement housing, specialised residences for the elderly, affordable housing and real estate debt.
In July, Octopus established a joint venture with Neinor Homes to invest €200 million in senior living projects in the country. Neinor will hold a 20% stake in the joint venture, while Octopus will control the remaining 80%.
This new move to boost senior living comes at a time when the Spanish market stands out for its lack of supply and a practically non-existent stock of new-build housing, with a coverage rate of 0.09% (1.6 thousand units). According to CBRE, Spain will need to build 276,000 units over the next 30 years, requiring an estimated total investment of 45 billion euros, to reach an optimal stock level of 5%.