Patron Capital and Curation Capital snap up PBSA asset in Durham

A joint venture between Patron Capital and Curation Capital has purchased Sheraton Park, a 418-bed student housing complex in Durham, England, near Durham University. 

Sheraton Park

The plan is to renovate and modernize the two-building, 12,569 m2 property, improving its energy efficiency for future students. 
The acquired student accommodation, Sheraton Park, houses Ustinov College, Durham University's sole postgraduate-only college. It consists of two buildings: the 6,647 m2 Sheraton House, built in 2017, and the 5,921 m2 Neville House, originally constructed in 1921 but renovated and expanded in 2017.
Patron Capital and Curation Capital formed this joint venture specifically to buy and renovate student housing in UK locations with top-tier universities, including Russell Group members. The purchase of the property was funded by Patron Capital's Fund VII and a £23.5 mln (€27.9 mln) loan from Leumi UK.
While a sixth overall collaboration between the two firms, previous acquisitions under a different joint venture include student housing 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, 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.

Chris Stallard, relationship director at Leumi UK, commented: “This is our fourth deal with Curation Capital and Patron Capital, and highlights our continued conviction in the PBSA sector, based on the highly supportive demand drivers. Sheraton Park is a high quality asset at a growing university presenting clear accommodation needs, which underlines our confidence in its bright future.”