Patron and Curation JV buys 418-bed PBSA asset in Durham
Patron Capital, the pan-European institutional investor focused on property-backed investments, has acquired Sheraton Park, a 418-bed PBSA scheme in Durham in north-east England within walking distance of Durham University.
The acquisition was made on behalf of a new joint venture with Curation Capital, a London-based vertically integrated real estate investment manager that invests in and manages student accommodation, co-living, private residential and self-storage.
“Durham is one of the UK’s most sought-after university cities, drawing students from across the globe”, said Michael Haverty, Founding Partner, Curation Capital. “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.”
Sheraton Park is a 135,280 sq ft PBSA asset across two buildings that the joint venture will now upgrade, transforming the assets into modern, energy-efficient accommodation for the next generation of students.
“Refurbishment of UK student housing remains a high conviction theme for Patron”, said Irina Stamate-Rocha, Senior Partner, Patron Capital. “We look forward to implementing our refurbishment plan to drive value.”
Sheraton Park is home to Ustinov College, Durham University’s only exclusively postgraduate college. Sheraton Park comprises two properties, Sheraton House, a building constructed in 2017 and Neville House, a property originally constructed in 1921 but converted and extended in 2017.
The JV between Patron Capital and Curation Capital 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 £23.5 million loan from Leumi UK to finance the acquisition of the asset.
Sheraton Park represents Patron Capital and Curation Capital’s sixth acquisition, but is the first for this new JV. In a previous JV the businesses have acquired five assets in key student accommodation locations including Birmingham, Nottingham, Manchester and London.
