Patron Capital has announced the launch of a new joint venture with Curation Capital, a London-based real estate investment manager, to acquire and refurbish existing student properties located in UK towns and cities that are linked with Russell Group or tier one universities.
The joint venture partners have acquired their first site, Beech Gardens, a 250-bed development in Birmingham. Located in the popular area of Edgbaston, the development benefits from close proximity to the city’s eight university.
Almero Student will manage the assets purchased by the investment vehicle. Founded in 2013, Almero currently offers a variety of affordable, well-managed quality accommodation to more than 800 students, with sites in London, Birmingham, Bristol, Nottingham, Manchester, Leeds, and Exeter.
Funding for the joint venture came from Patron Capital’s recently closed Fund VI.
‘We are pleased to enter the UK student accommodation market with our partner, Curation Capital,’ said Keith Breslauer, managing director at Patron Capital. ‘Despite the turbulence caused by the pandemic, PBSA has shown resilience, and recent figures from UCAS show that the number of applications for university places is up 8.5%, supported by the counter cyclical benefits of higher education and an uncertain economic backdrop. We see significant opportunities in this market, particularly where value can be driven from refurbishment, additional development and targeted asset management.’
Michael Haverty, founding partner of Curation Capital, said: ‘The relationship will allow us to build and create a high-quality portfolio of student assets located in Russell Group and tier 1 towns and cities. The Beech Gardens Birmingham acquisition offers a fantastic opportunity to own an asset in a top national student market. We intend to follow this up with further acquisitions throughout the next few years.’
