Torsion and Zenzic Capital form JV
A joint venture between the Leeds property group and the investor, covering five projects worth a combined £147m, forms the foundation of Zenzic’s entry into UK purpose-built student accommodation.
The PBSA strategy launched by London-based Zenzic, which bills itself as a real estate credit and special situations investment manager, is targeting a portfolio GDV of £500m-plus.
This strategy, through which Zenzic will invest in existing stock and develop new assets, will help address the UK’s acute shortage of high-quality PBSA, the firm said.
Zenzic’s joint venture with Torsion Group, the Leeds-based residential developer, contractor and operator, is targeting a total portfolio GDV of £250m-plus across seven schemes.
The first five schemes with Torsion are all in Russell Group university locations and on completion will comprise a combined 817 bedspaces.
Two, located in Leeds and Nottingham, are newly built and fully let, the Leeds building being a 91-bed building branded as Trapezium.
The other three are new developments in Warwick, Nottingham and Leeds – a 183-bed offer at Burley Street, consented in September – and are currently under construction, with completion scheduled for the academic year beginning in September 2025.
Each asset will be operated by Torsion-owned LUNA Students.
Nadine Buckland, chief executive of of Zenzic Capital, said: “The UK student accommodation sector is underpinned by a number of highly attractive tailwinds including growing student numbers, an acute shortage of high-quality supply and an inflation-protected income profile that enhances returns for our investors against a challenging wider macroeconomic backdrop.
“We have already established a strong track record in the PBSA market, and this strategy enables us to increase our exposure to a sector that is one of our most compelling conviction calls.”
“As part of this strategy, we look forward to building on our longstanding relationship with Torsion through this joint venture as we work together to deliver a best-in-class, sustainable product that meets the needs of modern students.”
Torsion Group chief executive Dan Spencer said: “Having worked with Nadine for over eight years, I am excited to form a joint venture and partner with them in the delivery of this current pipeline. Our strong relationship with Zenzic made forming the joint venture seamless, and we look forward to doing many more deals together. The partnership gives us a strong foundation to scale and accelerate our growth in the PBSA sector.
“We are actively taking measures to reduce our embodied carbon emissions on all our developments. That is because sustainability remains at the forefront of our strategy and decision-making as we look to play a leading role in delivering decarbonisation across the construction sector.”
