Leumi to fund Newcastle PBSA overhaul

The lender has agreed to back Curation Capital with a £33m loan to acquire and refurbish a 416-bedspace student development.

Curation is understood to have paid vendor IP Investment Management £28.75m for the PBSA scheme, which is called Mansion Tyne and is close to the Quayside.

The project represents Curation’s maiden venture into Newcastle.

Leumi UK said the deal was completed within a month of the mandate being handed to it, and marks the fourth completed student accommodation deal between both parties.

Christopher Stallard, relationship director at Leumi UK, said: “We are pleased to complete our fourth deal with one of our longstanding clients, Curation Capital. Our continued partnership is a great indication of the support we provide to our clients.

“This is especially crucial in the student accommodation sector, where timely completion is essential to accommodate students before the start of their first term at university.

“Newcastle has two highly regarded universities and is a market that is underserved in purpose-built student accommodation, with Savills estimating that around three-fifths of full-time students are not catered for.”

Michael Haverty, partner at Curation Capital, said: “Once again, collaborating with the Leumi team has been an absolute pleasure as they continue to demonstrate a clear understanding of our business objectives, project goals and timelines.

“Their personalised approach ensures fast and reliable responses, coupled with the expert knowledge essential for efficiently closing our deals. This was particularly important in this circumstance as they successfully closed the deal within just 4 weeks.”

Stephenson Harwood provided legal counsel while Savills advised on valuation for Leumi UK.