Leumi UK secures £8.5 million loan for the acquisition and refurbishment of Birmingham PBSA scheme
Posted: 3rd January 2024 | Share
Leumi UK, a specialist property lender, has granted an £8.5 million loan facility to Patron Capital Partners to acquire and refurbish a 136-bed PBSA scheme in Birmingham, in a joint venture conducted with investment manager Curation Capital. This loan marks Leumi UK's third PBSA deal with Curation Capital and Patron Capital Partners.
The 12-month works period will include refurbishment to existing units and communal areas alongside the conversion of unused space into additional units.
The Birmingham asset is 2.4 miles southwest of the City Centre near Edgbaston, and is walking distance from the University of Birmingham, Birmingham City University and Aston University.
Patron Capital Partners, a team of seasoned professionals with over 23 years of collective experience, has successfully raised approximately €5 billion across eight fund vehicles. The investment in this joint venture comes from Fund 6, with total equity commitments reaching approximately €877 million to date.
Stephenson Harwood LLP acted for Leumi UK on the legals with Savills providing valuation advice and Gardiner & Theobald LLP providing construction advice.
Chris Stallard, Relationship Director at Leumi UK, said: “Patron Capital and Curation Capital consistently showcases their expertise in identifying assets with robust, high-earning fundamentals across the UK, creating a seamless and enjoyable credit process for both parties involved and we have again been able to complete this deal within challenging exchange and completion timelines. We look forward to collaborating on more deals with Patron and Curation in the future.”
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.”