Patron Capital joins forces with Curation Capital for Durham PBSA

Patron Capital has acquired Sheraton Park, a 418-bed purpose-built student accommodation scheme in Durham, on behalf of a new joint venture with Curation Capital. Sheraton Park is a 135,280 sq ft PBSA asset set across two sites. The JV will transform the building into modern energy efficient accommodation for “the next generation of students”. Sheraton Park is home to Ustinov College, Durham University’s only exclusively postgraduate college. Sheraton Park comprises two properties, Sheraton House, a 71,547 sq ft building constructed in 2017, and Neville House, a 63,733 sq ft property originally constructed in 1921 but converted and extended in 2017. This 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 £23.5m 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 acquired five assets in key student accommodation locations including in Birmingham, Nottingham, Manchester and London. 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, said: “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.”