Real estate credit and special situations investment manager Zenzic Capital has partnered with UK residential developer Torsion Group to develop a £43.5m (€51.5m) purpose built student development (PBSA) project in Leeds.
This project means the partners have achieved a further milestone in their £250m PBSA strategy with planning consent secured on Kirkstall Road, Leeds. Zenzic has provided a preferred equity facility for the development for the £43.5m scheme.
The venture, which launched in January, now comprises five major schemes, all located in Russell Group university cities where there is an acute shortage of high-quality PBSA.
Senior debt for the scheme is being provided by Atelier, a specialist finance company that delivers bespoke development finance solutions. All three partners have worked together previously on project deliveries including large PBSA developments across the north of England and Midlands.
This latest scheme will comprise 205 studio rooms across 10 floors as well as communal spaces, roof gardens, a gym, a social lounge, cycle storage and study areas.
Once the project is completed and handed over it will be operated by LUNA Students, which is part of Torsion Group.
Dan Spencer, chief executive officer at Torsion Group, said: “Kirkstall Road has become the latest high profile PBSA development to benefit from our ongoing strategic partnerships with leading finance companies.
“Completing the joint venture means that it now becomes the latest in a series of large PBSA developments we have in our pipeline.”
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.
“By carefully selecting the right development partner, we are therefore confident of enhancing returns for our investors. 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.”
Louise Bena, CMO at Torsion Group and managing director of Luna Students, said its PBSA offering in Leeds has reached “a significant milestone with over 500 beds, solidifying our position as a leading provider in the city”.
She added: “This expansion not only reinforces our commitment to Leeds but allows us to deliver an unparalleled living experience for students on their university journey. By offering a high-quality, safe environment, we’re providing a home away from home for young adults taking their first steps towards independence.”
Rav Kudhail, lending director at Atelier, said: “Torsion’s proven track record in delivering high-quality PBSA means we are delighted to partner with them once again on this latest development in Leeds.
“We worked closely with the Torsion team to structure an effective facility which will enable them to secure the site and deliver the project.”
Real estate credit and special situations investment manager Zenzic Capital set up a UK student housing strategy, seeking to invest more than £500m (€582m), in January of this year.
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