£15m Birmingham student scheme snapped up by JV

Credit: Leumi UK

A joint venture has acquired a 136-bed student scheme on the Hagley Road, as part of its ambitions to build a £100m portfolio.

B16 has been picked up by the JV between Patron Capital and Curation Capital for £15m and is the partnership’s second acquisition in Birmingham and fifth overall. The 250-bed Beech Gardens in Edgbaston marked the JV’s debut acquisition.

Leumi UK, a specialist property lender, has granted an £8.5m loan facility to Patron Capital Partners to acquire and refurbish the scheme over the next twelve months.

Launched in 2021, the JV announced plans to purchase between five and 10 student properties over the next five years in existing assets in towns or cities linked with Russell Group or tier-one universities, for between £10m and £20m before refurbishing them.

It has now unveiled plans to invest another £200m in new assets over the next two years after raising €5bn across eight fund vehicles.

Irina Stamate-Rocha, investment Director at Patron Capital, said: “Having made the first acquisition for our joint venture with Curation Capital in Birmingham in 2021, we are pleased to return to the city with our latest deal.

“With three popular universities nearby and an ongoing shortage of student accommodation – a reported shortfall of more than 12,000 beds – we remain just as convinced in the fundamentals of investing in Birmingham now as we did nearly three years ago.

“Looking ahead, the investment case for student accommodation remains compelling and we have a strong appetite for further acquisitions, with a healthy pipeline of assets identified. To that end, we shall be looking to invest at least a further £200m in new assets in the next two years. Key to achieving our goals with this project was Leumi UK’s collaborative instincts, eye for detail and knowledge of the student market.”

Click here to sign up to receive our new South West business news...