Patron Capital eyes PBSA opportunities and expands investments

Patron Capital, a European real estate investor with a primary focus on logistics, PBSA, and healthcare, is targeting older, unrenovated properties in the PBSA sector. 

Irina Stamate-Rocha

Irina Stamate-Rocha, a senior partner at Patron Capital, told CRE Media Europe at Expo Real in Munich that their UK strategy involves upgrading existing PBSA to provide more affordable options for students, aiming for an affordability ratio of 50–60%. This approach addresses the increasing cost concerns of both domestic and international students, as well as the rising costs of acquisition and marketing.
In continental Europe, due to the scarcity of older PBSA suitable for refurbishment, the focus is on new developments and assessing their feasibility, with Germany and Italy being particularly attractive markets. The company has also been exploring opportunities in Spain, where they have already invested in a co-living platform.
Stamate-Rocha noted the importance of core capital emergence in various markets for facilitating transactions, while also emphasizing the need for caution due to a weak macroeconomic environment and varying degrees of economic challenges across different sectors.
Mitsubishi's recent acquisition of a majority stake in Patron Capital will support Patron's main fund, Fund 7, which is already 70–80% deployed and expected to be fully deployed this year. An eighth and larger fund is planned, with Mitsubishi's involvement expected to enhance investor relations, particularly in Asia and the US, and support expansion into new strategies, potentially including core investments.
Patron has initiated a credit fund focused on UK mid-sized loans and, while value-add remains their primary focus, they anticipate introducing more products linked to their areas of expertise.
Separately, Patron Capital and Inbright JV have secured over €100 mln in financing from BGO for the Ludwigsburg Industrial Centre (LIZ) project in Germany. This project will involve renovating existing structures and constructing new buildings on the 51,000 m2 site north of Stuttgart, transforming a former manufacturing site into a 100,000 m2 GLA ESG-compliant light industrial campus. The development aims for DGNB gold certification through resource-conserving renovations, energy-efficient construction, and the incorporation of green technologies.
In addition to their activities in Germany, the Patron Capital and Inbright JV is expanding into Portugal, investing in light industrial and logistics properties valued at €100 mln.

Branislav Pekić