Octopus Capital raises further £118m for affordable housing fund

Jack Burnham, head of affordable housing at Octopus Capital, said: “We’re delighted to have Strathclyde on board and to be continuing our relationship with Avon and London CIV.

“It’s great to see this level of interest in affordable housing LGPSs and also from the government more broadly.”

Avon committed £50m in April this year and London CIV’s last investment was £50m in December 2023. Other LGPSs involved in earlier funding rounds include Gloucestershire, Devon and Clwyd.

Christopher Osborne, head of real estate at London CIV, an investment pool of 32 of the capital’s LGPSs, said it was delighted by the new commitment. 

He added: “We look forward to the fund continuing to drive both returns and the supply of genuinely affordable and quality homes for some of the most vulnerable members of society.”

This funding round coincides with the for-profit registered provider owned by Octopus Capital, NewArch Homes, reaching its milestone of owning 500 affordable homes. The majority of these are for social and affordable rent.

The newest addition to this stock was the purchase of 220 homes from the Essex-based housing association CHP in April. NewArch lets these homes directly to tenants.

NewArch has also previously partnered with the housing associations Bromford Flagship and Southern Housing as managers.

This rise in investment and stock has led to an expansion to Octopus Capital’s affordable housing team. Most recently, Ellie Vlavianou was appointed as investment director, and Sarah Thomas as a non-executive director of NewArch Homes.