In a strategic move set to energise the UK student housing market, Patron Capital, the pan-European property investor, has partnered with Curation Capital, a vertically integrated real estate manager, to acquire and refurbish Sheraton Park, a 418-bed purpose-built student accommodation (PBSA) scheme in Durham. The acquisition marks the first investment in a newly launched joint venture between the two firms, focused on value-add opportunities in cities with Russell Group or top-tier universities.
Located within walking distance of Durham University, the 38,100m² asset comprises two buildings: Sheraton House, built in 2017 with 6,645m², and Neville House, a 5,920m² property originally constructed in 1921 and renovated in 2017. Sheraton Park is currently home to Ustinov College, the university’s only postgraduate-exclusive college. The new JV aims to upgrade the site into modern, energy-efficient accommodation catering to rising student expectations for sustainability and lifestyle.
Backed by Patron Capital’s €5.3bn investment platform through its Fund VII, and a €27.4m acquisition loan from Leumi UK, the deal signals growing institutional interest in the UK’s undersupplied student accommodation market. The JV’s strategy, aligned with ESG principles and long-term income generation, offers attractive risk-adjusted returns for investors as the sector continues to outperform traditional real estate categories.
“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,” said Irina Stamate-Rocha, Senior Partner at Patron Capital.
“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,” added Michael Haverty, Founding Partner at Curation Capital.
An overlooked yet significant angle for developers and institutional investors: the long-term lease to Durham University ensures robust occupancy and stable income, while the upgrade potential aligns with the pressing need for ESG-compliant retrofits, creating opportunity not just for rental growth but also capital appreciation through sustainable value enhancement.
People mentioned:
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Irina Stamate-Rocha – Senior Partner, Patron Capital
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Michael Haverty – Founding Partner, Curation Capital
Companies mentioned:
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Patron Capital – Pan-European institutional investor
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Curation Capital – London-based real estate investment manager
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Leumi UK – Acquisition lender for Sheraton Park
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Durham University – Occupier via long-term lease
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Ustinov College – a Postgraduate college located at Sheraton Park
IMAGE: Sheraton Park
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