Published: October 29, 2025

Enhancing social impact and income resilience in UK property portfolio

LGPS Central Limited (LGPSC), the investment manager for eight Local Government Pension Scheme (LGPS) funds, has committed £58 million to the Octopus Healthcare Fund, marking its first investment in the care home sector.

This investment brings LGPSC’s social residential allocation to 35% of its property portfolio, with total commitments now standing at £165 million.

The Octopus Healthcare Fund, managed by Octopus Capital, owns and operates over 100 modern, purpose-built care homes across the UK. The Fund recently received a 5-star rating from GRESB for the third consecutive year, recognising its exemplary ESG performance.

Mike Hardwick, Investment Director for Property at LGPS Central, said:

“This commitment takes us to our target weighting in the social sub-sector of residential property. The Fund’s stable, inflation-linked income streams offer strong alignment with our Partner Funds’ objectives for long-term, resilient returns. At the same time, the investment supports critical social infrastructure by providing modern, energy-efficient accommodation for older residents and creating employment in local communities.”

“Octopus stood out for its deep engagement with care operators and its integration of nursing professionals in the investment process, giving us confidence that patient care remains at the heart of the model.”

The Fund will play an increasing role in LGPS Central’s property strategy, as it continues to balance financial performance with social and environmental impact across its growing real estate portfolio.