JV snaps up 117-bedroom Manchester PBSA

A joint venture between Patron Capital and Curation Capital has acquired Ladybarn House in Fallowfield, with plans to refurbish the building. 

Lender Leumi UK has provided the JV with a £9.26m facility to fund the acquisition from Empiric Student Property and the refurbishment project. 

The refurb will see existing rooms reconfigured, as well as upgrades to the 117-bedroom property’s student amenity and ESG credentials. 

Keith Breslauer, managing director at Patron Capital, said the decision to buy Ladybarn House was driven by Manchester’s current PBSA supply and demand dynamic 

“Manchester is home to two of the UK’s largest universities, including the University of Manchester, which is the largest University in the UK by full-time student enrollment. 

“Unfortunately, the current supply of PBSA accommodation in the city only covers 24% of the total student numbers. With this deal, we will be looking well into the future, ensuring that students can stay in high-quality, energy-efficient housing for years to come.” 

A similar deal in December 2022 saw Leumi UK provide Patron Capital and Curation Capital with an £8.3m loan to acquire and refurbish a PBSA scheme in West Hampstead.   

Chris Stallard, relationship manager at Leumi UK, said: “With the number of young people attending university steadily increasing, combined with tenants’ greater insistence on environmentally friendly housing, PBSA assets such as Ladybarn House will be instrumental in meeting the growing demand and ensuring a bright future for both students and universities.” 

Stephenson Harwood acted for Leumi UK on the Fallowfield deal with Savills providing valuation advice, and Gardiner & Theobald providing construction advice.   

Ladybarn House last traded in March 2016 when Empiric acquired the property from Accrue Capital for £10.25m. 

Two years later, Empiric applied to expand the complex by adding an additional 44 bedrooms in a new-build, three-storey block. 

However, this project never progressed. Accrue, the owner before Empiric, had applied for a similar expansion but permission was refused by Manchester City Council and later at appeal. 

Ladybarn House was built in 1994 by the University of Manchester, which remains the freeholder, and was comprehensively refurbished by Accrue Capital in 2012. 

The building is located over the road from the University of Manchester’s Owens Park campus, which is in line for a comprehensive overhaul.