Five major student schemes bought by new joint venture
Torsion Group, the Leeds-based residential developer, contractor and operator, and Zenzic Capital, the real estate credit investment manager, have announced a new purpose-built student accommodation (PBSA) joint venture (JV) with the acquisition of five major schemes with a GDV of over £147m.
Two of these schemes, which are located in Leeds (Trapezium, Leeds – 91 beds) and Nottingham (One Hockley, Nottingham – 131+6 beds), are newly-built and fully let.
The other three are new developments in Warwick (Burnsall Road, Warwick – 196 beds), Nottingham (Corner Point, Nottingham – 210 beds) and Leeds (Burley Street, Leeds – 183 beds), which are under construction.
The three new developments will be delivered by Torsion in time for the start of the 2025/26 academic year.
The completed assets will be operated by Torsion-owned LUNA Students, which recently achieved three-star Fitwell certification on its 290-bed development in Birmingham in recognition of its strategies to optimise tenant health and satisfaction within its buildings.
Dan Spencer, CEO of Torsion Group, said: “Having worked with Nadine Buckland, CEO at Zenzic Capital 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.”
Nadine Buckland, CEO 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.”
