Scotland
UK
Ireland
London
Asset manager Octopus Capital has announced a successful fundraise of an additional £100 million for its Affordable Housing Strategy.
This latest round of investment includes £50 million secured from the Scottish National Investment Bank (SNIB), which is aligned with the Bank's mission to invest in places that transform communities and support thriving populations.
The Affordable Housing Strategy focuses on delivering high-quality, energy-efficient new-build homes across the UK, with a strong emphasis on social impact and sustainability.
Crucially for Scotland, the SNIB capital will all be deployed within the country, enabling a minimum of £100 million to be invested in Scottish developments. This investment marks a significant first for Octopus' Strategy in the region, introducing an intermediate rent tenure where both rent and energy costs will be discounted by approximately 20% compared to market renting. These homes will also be offered to key workers on a first priority basis.
The funding will also unlock more than 1,000 Zero Bills homes across England and Scotland. These properties are equipped with green technology—including a heat pump, battery, and solar panels—which allows residents to move in without having to pay any home energy bills for at least five to ten years.
Jack Burnham, Head of Affordable Housing at Octopus Capital, stated that the new capital closes them in on their next £500 million milestone and marks their "first time investing specifically into Scotland and its discounted market rent housing."
Nicola Douglas, Executive Director of Sustainable Investments at SNIB, noted that Octopus Capital's approach to sustainable building and discounting both rent and energy takes a "holistic approach to addressing cost-of-living pressures" amidst Scotland's current housing emergency.
The remaining capital came from a US public foundation, reflecting Octopus' success in attracting mission-aligned institutions globally. This fundraise follows the recent news of the Strategy participating in the world's largest Zero Bills scheme in Epping, Essex.
