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Our Process

How It Works

From acquisition to quarterly returns, a vertically integrated model that eliminates the middleman.

1. Source & Acquire

Identify undervalued opportunities including derelict buildings, land with planning, HMO conversions in high-demand areas.

2. Build In-House

Our construction team eliminates 15-25% developer markups, creating £300K-500K in instant equity on a typical £2M project.

3. Secure Government Tenant

Sign 5-25 year FRI leases with councils. They handle all maintenance, insurance, and repairs. You collect rent quarterly.

4. Generate Returns

15% quarterly distributions + 10% equity participation. Principal returned in 3-5 years via refinancing.

FCA Notice: Figures referenced (15% preferred return, 10% equity participation, 3-5yr capital return) are target projections only and are not guaranteed. Past performance is not indicative of future results. Capital is at risk. Suitable only for sophisticated investors, high net worth individuals, or certified sophisticated investors as defined by the FCA. Octavian Property Group is not authorised or regulated by the Financial Conduct Authority.

Government-Backed Security

Your Tenant Is the Government.

These aren't private renters who might miss payments. Our tenants are local councils and government-funded housing providers operating under statutory obligations.

98% Occupancy in 2008 Crisis

Social housing maintained near-full occupancy while commercial property collapsed. Demand is structural and countercyclical.

Full Repairing & Insuring Leases

5-25 year FRI leases shift all maintenance, insurance, and repair costs to the tenant. Your returns are protected.

Housing Act 1996 Obligation

Councils are legally required to house vulnerable populations. This isn't optional demand. It's statutory.

Worst Case? Still Strong Demand.

Our target is always a government-backed lease. But even in a worst-case scenario, every property we develop sits in a high-demand rental area. If a government tenant isn't secured, the property rents privately in locations where demand far outstrips supply.

Octavian Property Group - Government-tenanted property development
Active Government Lease - 12 Year FRI

Asset Class Comparison

Why Property Outperforms

Property is the only asset class that delivers income, capital growth, stability, compounding, and leverage in a single investment.

Criteria Property Stocks Bonds Cash Commodities
Reliable Income ✓ Variable Fixed Minimal ✗
Capital Growth ✓ ✓ ✗ ✗ Volatile
Inflation Hedge ✓ Partial ✗ ✗ ✓
Stability ✓ ✗ Moderate ✓ ✗
Leverage Potential ✓ Limited ✗ ✗ Limited

The Numbers

Why Supported Housing Wins

On the same gross rent, supported housing with FRI leases delivers significantly higher net income than traditional residential lettings.

Commercial FRI

Traditional Commercial

Gross Rent £100,000
Management 0%
Maintenance & Insurance 0%
Voids 0%

Net Rent

£100,000

Residential

Traditional Buy-to-Let

Gross Rent £100,000
Management -£15,000
Maintenance & Insurance -£15,000
Voids -£7,000

Net Rent

£63,000
Octavian Model

Supported Housing FRI

Government-Backed Lease

Gross Rent £100,000
Management £0
Maintenance & Insurance -£5,000
Voids £0

Net Rent

£95,000

+£32,000 vs residential

+ CPI-linked annual escalation

With FRI leases, the government-backed tenant covers all maintenance, insurance, and repair costs. Zero voids because demand is statutory. Zero management fees with Octavian. The result: you keep 95p of every pound earned, compared to just 63p in traditional residential.

10-Year Net Income Projection

CPI-linked supported housing rent overtakes commercial FRI by Year 3 and continues to compound.

Supported Housing FRI £1,089,000
+8.9% vs commercial
Commercial FRI £1,000,000
Residential Buy-to-Let £630,000
Year 3

CPI-linked rent overtakes commercial FRI

£89,000

More than commercial over 10 years

£459,000

More than residential over 10 years

Projection assumes 3% CPI annual escalation on supported housing FRI lease. Commercial FRI assumes flat rent over 10-year term. Residential assumes ongoing costs at 37% of gross rent. These are illustrative projections only and not guaranteed.

Ready to See How It Works in Practice?

Book a 30-minute discovery call. We'll walk you through a live project, the numbers, and how your capital would be deployed.

Book Your Discovery Call View Returns
Andrew Lindsey

Andrew Lindsey, CPA

CEO

Matthew Thomson

Matthew Thomson

Managing Director

Octavian Property Group

Common Questions

Frequently Asked Questions

The Investment Process
What happens after I invest with Octavian?
After completing your investor documentation and transferring capital, your funds are deployed into the next available project cycle. You'll receive a detailed project pack outlining where your capital is allocated, expected timelines, and projected returns. Quarterly distribution statements begin from the first distribution date, and you'll have direct access to Andrew for any questions throughout your investment term.
How long does the full investment cycle take?
The typical cycle from capital deployment to first quarterly return is 6-12 months, depending on where the project is in its development phase. Construction typically takes 9-18 months, followed by tenant handover and lease signing. Your 15% preferred return accrues from day one and is distributed quarterly once rental income commences.
How does Octavian select properties?
We target undervalued opportunities including derelict buildings, land with planning permission, and HMO conversions in areas with the highest demand for supported housing. Every acquisition must meet strict criteria: strong council demand, viable planning pathway, construction feasibility within budget, and the ability to secure a long-term FRI lease before we break ground.
What types of properties does Octavian develop?
We focus on residential conversions and new-build developments designed specifically for supported housing. This includes converting disused commercial buildings, HMO conversions, and ground-up developments. All properties are built to meet local authority specifications for supported living, ensuring they qualify for government-backed leases.
How is investor capital pooled across projects?
Capital is diversified across 4-8 active projects at various development stages: approximately 30% in stabilised income-producing assets, 40% in active developments building equity, and 30% in newly acquired opportunities. This approach provides immediate income from completed properties while building long-term value through development.

Property Development
Why does Octavian build in-house rather than outsourcing?
External developers typically charge a 15-25% markup on construction costs. By building in-house with our own team led by Matthew Thomson (25 years of construction experience), we eliminate this markup entirely. On a typical £2M project, this creates £300K-500K in instant equity, value that flows directly to our investors rather than being extracted by a middleman.
What does the construction process look like?
Matthew Thomson personally oversees every project from foundation to handover. The process follows a clear sequence: site acquisition, planning and design, groundworks, structural build, fit-out to council specifications, compliance certification, and tenant handover. Our in-house team manages contractors, timelines, and budgets directly. There's no intermediary layer adding cost or delays.
How is instant equity created through development?
Equity is created by the gap between total development cost and the completed property's market value. For example, if we acquire and develop a property for £1.5M total cost and its completed value is £2M, we've created £500K in equity. Building in-house widens this gap because we avoid the developer markup that would otherwise erode it.
How does Octavian handle planning approvals?
Matthew Thomson's 25 years of experience with local authorities and government commissioning gives us an advantage in navigating planning. We have established relationships with councils across England and Wales, and we design developments specifically to meet their supported housing requirements. This alignment means our planning applications are typically well-received because we're building exactly what councils need.
What happens if construction costs exceed budget?
We use fixed-price construction contracts to protect against cost overruns. Our in-house team's deep experience allows us to budget conservatively from the outset. We underwrite projects with contingency built in. If unexpected costs do arise, they're absorbed within the project margin rather than passed on to investors, because our compensation is tied to the equity upside, not a fixed fee.

FRI Leases & Tenants
What is an FRI lease and why does it matter?
FRI stands for Full Repairing and Insuring. Under an FRI lease, the tenant, in our case a local council or government-funded housing provider, is responsible for all maintenance, insurance, and repair costs. This means the property owner keeps virtually all of the rental income as net profit, with no ongoing management burden or unexpected maintenance bills.
How long are the lease terms?
Our FRI leases range from 5 to 25 years. Longer leases provide greater income certainty and stability, while shorter leases may offer higher initial yields. The lease length is agreed with the council tenant before construction begins, ensuring income security is locked in before a single brick is laid.
How does Octavian select tenants?
Our tenants are local councils and government-funded housing providers, not private individuals. Matthew Thomson's 25 years of relationships with councils and NHS commissioning bodies give us direct access to tenants that others can't reach. We secure lease commitments before construction begins, eliminating the risk of building without a tenant.
What happens when a lease expires?
At lease expiry, properties can be re-let to councils (demand typically increases over time due to the housing shortage), sold on the open market at full market value, or converted to alternative use. The underlying property retains its value regardless of the lease status, and the structural housing shortage ensures ongoing demand for supported housing.
What is the worst-case scenario if a government tenant isn't secured?
Our target is always a government-backed FRI lease, and that's what we deliver on every project. But even in a worst-case scenario, every property we develop is located in a high-demand rental area where demand far outstrips supply. The property would rent privately at competitive market rates, still generating income backed by a physical asset in a location where people need homes. Your capital is never tied to a speculative build in a low-demand area.
Are the lease payments inflation-linked?
Supported housing FRI leases include CPI-linked annual rent escalation clauses. This means your rental income grows each year in line with inflation, protecting your real returns. Over a 10-year period, CPI-linked supported housing rent overtakes flat commercial FRI rent by Year 3 and continues to compound, generating £89,000 more over the decade.

Supported Housing
What is supported housing?
Supported housing provides accommodation with additional support services for people who need help to live independently, including those with learning disabilities, mental health needs, physical disabilities, or those leaving homelessness. It's a critical part of the UK's social care infrastructure, funded by local councils and regulated under national housing standards.
How does supported housing differ from standard social housing?
Standard social housing is general-purpose rental accommodation managed by housing associations. Supported housing includes additional care and support services tailored to residents' needs. This specialist nature commands higher rental rates, longer lease commitments from councils, and qualifies for specific government funding streams, all of which benefit investors.
What is the Housing Act 1996 and why is it important?
The Housing Act 1996 places a statutory obligation on local councils to provide housing for vulnerable populations. This isn't discretionary; councils are legally required to house people who meet certain criteria. This legal mandate creates non-optional, government-backed demand for the properties we build, providing income certainty that no private-sector tenant arrangement can match.
How does the housing crisis impact Octavian's investment thesis?
The UK faces a structural undersupply of approximately 105,000 social housing units per year (145,000 needed, ~40,000 built). This gap has persisted for decades and is widening. For investors, this means demand for our completed properties is essentially guaranteed. Councils are desperately seeking quality supported housing, and we're building exactly what they need.
What role do councils play in Octavian's model?
Councils are both our tenants and our partners. They identify housing need, commit to long-term FRI leases (5-25 years), fund the ongoing support services for residents, and handle all property maintenance and insurance under the FRI lease terms. This relationship is built on Matthew Thomson's 25 years of working directly with local authorities and NHS commissioning bodies.

Strategy & Comparison
Why does property outperform other asset classes?
Property is the only asset class that simultaneously delivers reliable income, capital growth, inflation hedging, stability, and leverage potential. Stocks offer growth but with high volatility. Bonds provide fixed income but no growth. Cash is stable but erodes with inflation. Commodities hedge inflation but produce no income. Government-backed property with FRI leases combines the best attributes of all asset classes.
How does net rent compare across property types?
On identical gross rent of £100,000: Commercial FRI retains £100,000 (0% costs), Residential buy-to-let retains only £63,000 (37% costs from management, maintenance, insurance, voids), and Octavian's Supported Housing FRI retains £95,000 (5% costs). The combination of government-backed tenants, FRI lease structure, and zero management fees maximises net income.
What does the 10-year projection show?
Over 10 years, CPI-linked supported housing FRI generates £1,089,000 in net income: £89,000 more than flat commercial FRI (£1,000,000) and £459,000 more than residential buy-to-let (£630,000). The CPI escalation means supported housing rent overtakes commercial by Year 3 and continues to compound, widening the gap every year.
How does CPI escalation benefit investors?
CPI (Consumer Price Index) escalation clauses in our FRI leases mean rental income automatically increases each year in line with inflation, typically 2-4% annually. This protects your real returns from being eroded by inflation and creates a compounding effect. Over a 10-year lease, a 3% annual escalation increases rent by approximately 34% compared to a flat lease.
Why does Octavian focus on UK property specifically?
The UK offers a unique combination of factors not available in other markets: a severe, legally-mandated housing shortage (Housing Act 1996), mature and transparent property market with strong rule of law, established FRI lease structures that shift costs to tenants, and government-backed tenants with statutory obligations. Combined with our in-house construction capability, this creates an investment opportunity that can't be replicated elsewhere.