Patron Capital has acquired a 418-bed purpose-built student accommodation (PBSA) scheme in Durham on behalf of a new joint venture with Curation Capital for an undisclosed price.
The 135,280 sq ft PBSA asset spans two buildings – Sheraton House and Neville House – within walking distance of Durham University. Patron and Curation plan to transform the building into modern energy efficient accommodation.
The JV has been set up to acquire and refurbish student accommodation properties in UK towns and cities with Russell Group or tier one universities. Funding for the JV came from Patron Capital’s Fund VII value add fund, supported by a £23.5m loan from Leumi UK to finance the acquisition of the asset.
Irina Stamate-Rocha, senior partner at Patron Capital, said: “Refurbishment of UK student housing remains a high conviction theme for Patron. We are pleased to be able to kick start another JV with Curation with the acquisition of this property with a long term lease to the University of Durham and look forward to implementing our refurbishment plan to drive value.”
Michael Haverty, founding partner at Curation Capital, added: “We’re delighted to announce the launch of our second joint venture with Patron Capital. Durham is one of the UK’s most sought-after university cities, drawing students from across the globe. This new venture reinforces our shared commitment to expanding our investment strategy. Sheraton Park represents a prime opportunity to own a high-quality asset in one of the strongest student accommodation markets in the country.”
