Five PBSA schemes acquired by Zenzic Capital and Torsion Group JV

Zenzic’s new £500m+ strategy has been seeded with the acquisition of five schemes in a joint venture (JV) with Torsion Group.

The Zenzic Capital and Torsion Group JV has acquired five PBSA schemes in key university cities | PBSA News
The Zenzic Capital and Torsion Group JV has acquired five PBSA schemes in key university cities.

Real estate credit and special situations investment manager Zenzic Capital has launched a new UK purpose-built student accommodation (PBSA) strategy with a target portfolio GDV of over £500m. The 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.

This new strategy has been seeded with the acquisition of five major schemes with a total GDV of over £147m through a JV with developer, contractor, and operator Torsion Group. The JV is targeting a total portfolio GDV of over £250m across seven schemes and will deliver a much needed 1,566 rooms by the end of this year.

“The UK student accommodation sector is underpinned by numerous 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.”

Nadine Buckland, CEO, Zenzic Capital

The first five PBSA schemes with Torsion – which are all in Russell Group university locations in some of the most popular student cities – will comprise 817 beds and include ensuite bedrooms, social, fitness and wellbeing amenities, study zones, and recreational areas. Two of these schemes, located in Leeds and Nottingham, are newly built and already fully let.

The other three are new developments in Warwick, Nottingham and Leeds, which are already under construction. These will be delivered by Torsion in time for the start of the 2025/26 academic year. In line with both companies focus on ESG, sustainability is central to the design and construction of all five schemes, with the three new developments targeting a minimum BREEAM Very Good rating.

“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.”

Dan Spencer, CEO, Torsion Group

The completed developments will be operated by Torsion-owned operator LUNA Students, which has 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.

This is Zenzic’s second transaction within the company’s wider special opportunities strategy, which targets growth-led situations alongside more tactical financings to capture compelling opportunities across the business cycle.