Sam Wisker, senior investment manager at Octopus Capital, discusses the firm’s impact-driven investment strategy and sustainability initiatives in UK real estate.
What attracted you to specialising in real estate debt, and what keeps you excited about this part of the industry?
Going back well before I started work, I was always fascinated by things like Grand Designs. I’ve had a real passion for housing design and architecture and how buildings look, and that’s naturally evolved into what I’m doing now. I really love working with the developers we partner with, especially those building lovely projects that I’d one day love to live in myself.
Creating things that are beautiful and contribute to place-making for those areas is genuinely rewarding. It’s fun, it’s exciting, and you get to see all sorts of new housing projects come to life. It feels like a very good time to be involved in the living sector, particularly as it’s such a key focus of public sector policy now, as well as private capital like ours.
Could you give us a brief overview of Octopus Capital’s real estate business and the types of projects you typically invest in?
Octopus Capital recently rebranded from Octopus Real Estate, which itself used to be Octopus Property, and before that, when I first joined, we were Dragonfly Property Finance. Over time, we’ve become a very broad investor and lender, still with a strong focus on real estate, but now also encompassing private debt and UK infrastructure.
We invest in and own 105 care homes, as well as a significant number of retirement living communities. We also now have our own for-profit registered provider of social housing as part of our affordable housing strategy. So, our business is diverse now – we lend and invest across the whole living sector, including residential bridging loans, commercial properties such as industrial, office, hotels, self-storage, and development schemes.
Being part of the Octopus Group, we are a certified B Corp, and fundamentally try to do business differently, caring not only about creating shareholder value but about the people, communities, and environments we invest in. Our approach is always impact-driven, whether we’re delivering quality care beds, enabling quality retirement living, or bringing affordable homes to market.
What major trends are you seeing in the real estate market right now, and how are you positioning your portfolio in response?
There have undoubtedly been some delays in the planning sector – getting deals through planning has become far more difficult recently. That’s not been helped by increases in the cost and the supply issues around materials, meaning developers often face higher costs than anticipated, which can wipe out the profitability of certain schemes.
That’s led to fewer new developments coming to the market with proper planning consents. Additionally, rising interest rates have increased the cost of borrowing, making it harder for first-time buyers (FTBs) and people getting mortgages, so there’s sometimes hesitation around buying.
That’s where Octopus Capital tries to fill the gap: we focus on funding genuinely affordable homes and meeting real demand in communities. In terms of trends, I’m seeing huge growth in the living sector – not just retirement living, where we’re already doing a lot, but also co-living, which is an emerging sector.
The Government has also announced a strong push for brownfield regeneration, with many new cities and towns targeted for more urban development. That lines up with the backbone of our new debt fund, which is focused on regeneration, refurbishment, repositioning, and redevelopment – essentially breathing new life into under-utilised sites and providing quality housing across the country.
How important is sustainability and Environmental, Social, and Governance (ESG) investing in your real estate strategy?
Sustainability and ESG are central to our strategy at Octopus Capital. We strive to take a holistic view of what a ‘good’ housing development should look like and then work to incentivise the right behaviours in those schemes. We encourage developers to work with well-regarded charities like the Lighthouse Charity, which addresses issues such as mental health in the construction sector and improves quality of life for workers.
We also put a strong emphasis on environmental sustainability: from promoting developments that enhance local biodiversity – such as planting wildflower meadows or preserving natural water sources – to actively supporting energy-efficient initiatives. For example, with our sister company Octopus Energy, we incentivise building homes that qualify for their ‘Zero Bills’ tariff – where, if a home is built to the right specification (with solar, heat pumps, and battery storage), the buyer is guaranteed five to 10 years without energy bills.
That could save a family around £25,000 and has an enormous positive impact, both financially for buyers and for the environment, since these homes are fossil fuel free and generate their own renewable energy.
Beyond that, via our Greener Homes Alliance partnership with Homes England, we’ve raised significant funding to help small and medium-sized enterprise (SME) developers create greener, more sustainable homes, ensuring we’re always championing best practice in ESG.
What sets Octopus Capital apart from other lenders in the real estate debt space?
What truly sets us apart is the way we invest and the meaning behind our investments. We focus on areas that really need our support and private capital, whether that’s delivering quality care beds, leading the way in retirement living, or creating more energy efficient and affordable homes.
Everything we do centres on making a meaningful impact – not simply providing finance but driving positive change for communities and the environment. Unlike traditional lenders who might just look at shareholder returns, we take a holistic approach, prioritising people and long-term value creation.
Through initiatives like our Greener Homes Alliance with substantial financial incentives, we’re directly responsible for encouraging developers to go beyond standard requirements and deliver lasting, genuinely beneficial outcomes.
What are some common challenges you see brokers or borrowers facing in today’s market, and how does Octopus help overcome them?
There are quite a few obstacles in the current market. First off, as I mentioned before, delays in the planning sector have made it much tougher for developers to get projects off the ground. Materials and construction costs have also shot up in recent years, which can make previously viable projects less profitable or simply not stack up anymore. Interest rates have risen, making mortgages and borrowing much less affordable and reducing buyer demand.
At Octopus, we try to address these challenges head-on by providing flexible, tailored funding solutions that help developers manage higher costs, bridge gaps, and bring much-needed affordable schemes forward.
Our focus is on funding developments that genuinely answer local needs – like affordable or sustainable homes – whilst working closely with brokers to help them navigate the ever-changing landscape.
How do you see the real estate debt market evolving over the next 12-24 months, and what opportunities or risks should brokers be aware of?
Over the next year or two, I expect to see the living sectors, such as retirement, co-living, and affordable housing, continue to grow, partly because of Government backing and new policy drives, like the expansion of brownfield regeneration.
There will be new opportunities in areas like sustainable and energy-efficient developments, especially as funding incentives align with Government goals. However, ongoing headwinds such as higher interest rates, planning bottlenecks, and construction cost inflation are likely to persist. Brokers should be alert to these risks, but also to the potential in emerging sectors and regeneration deals, particularly in regional towns and cities targeted for investment.
What advice would you give to brokers who are new to real estate market, or who want to deepen their relationship with alternative lenders like Octopus Capital?
My advice would be to seek out lenders who act with integrity and really understand the needs of both brokers and their clients. At Octopus, we pride ourselves on being honest, purpose-driven, and relationship-focused – it’s not just about numbers, it’s about meaningful, long-term partnerships.
For brokers new to this space, don’t hesitate to get in touch, reach out to discuss client requirements, and learn how our purpose-driven approach can support your business. We’re always keen to work with quality brokers who share our values and our desire to make a positive difference – so building that open line of communication is key to successful collaborations.
