A joint venture has secured a substantial investment in Birmingham’s student housing market, showcasing a growing interest in this sector. The partnership, involving Patron Capital and Curation Capital, has invested £15 million in a 136-bed student accommodation located on Hagley Road. This move is part of a larger strategy to develop a portfolio valued at £100 million.

The property, known as B16, represents the second venture in Birmingham for this partnership, following their initial investment in Beech Gardens, Edgbaston, which added 250 beds to their burgeoning collection. This latest acquisition underscores the increasing focus on student housing in major university cities.

Additionally, Leumi UK, a specialist in property lending, has played a pivotal role by providing an £8.5 million loan to facilitate the acquisition and refurbishment of the property. This is expected to unfold over the next twelve months, enhancing the value and appeal of the student scheme.

The joint venture, initiated in 2021, has set ambitious targets. It aims to acquire and refurbish 5 to 10 student properties over the next five years. These properties, ideally located in areas associated with Russell Group or tier-one universities, are projected to range between £10 million and £20 million in value before refurbishments.

Further elevating their investment strategy, the partnership has announced plans to infuse an additional £200 million into new assets over the next two years. This decision follows the successful raising of €5 billion across eight fund vehicles, reflecting a strong market confidence in student housing.

Irina Stamate-Rocha, Investment Director at Patron Capital, expressed enthusiasm about the venture’s return to Birmingham. She highlighted the city’s acute shortage of student accommodation, with a reported deficit of over 12,000 beds, as a key factor driving their investment decision. Stamate-Rocha also emphasised the robust investment prospects in student accommodation and the JV’s readiness for further acquisitions, underpinned by a solid pipeline of assets.

The collaboration with Leumi UK was noted as instrumental in advancing these goals, with their comprehensive understanding of the student market and attention to detail being particularly beneficial for the project’s success.