Durham PBSA acquired by investment JV
Patron Capital and Curation Capital have snapped up the 418-bed, 135,000 sq ft Sheraton Park and intend to refurbish its two buildings, which are within walking distance of the city’s university.
Sheraton House is a 71,547 sq ft building constructed in 2017, while Neville House comprises 63,733 sq ft, originally constructed in 1921 but converted and extended in 2017.
Patron Capital is a pan-European investor focused on property, which Curation Capital is based in London that focuses on student accommodation, co-living, and residential.
The two companies have acquired five assets together before, however with this purchase they have set up a joint venture that will focus on obtaining and renovating student accommodation in UK 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.
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.”
