Zenzic Capital has launched a new UK purpose-built student accommodation (PBSA) strategy with a target portfolio GDV of over £500m. The strategy will see Zenzic invest in existing stock and develop new assets.
Zenzic’s strategy has been seeded with the acquisition of five major schemes with a total GDV of over £147m through a joint venture with 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.
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.”
The first five schemes with Torsion, which are all in Russell Group university locations, will comprise 817 beds and include ensuite bedrooms; social, fitness and wellbeing spaces; study zones; and recreational areas upon completion.
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. The three new developments will be delivered by Torsion in time for the start of the 2025/26 academic year.
Dan Spencer, CEO of Torsion Group, said: “I am excited to form a joint venture and partner with them (Zenzic) in the delivery of this current pipeline. Our strong relationship 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.”
The completed assets will be operated by Torsion-owned LUNA Students, a specialist operator providing a first-class service to students and building owners, with wellbeing and sustainability at the forefront of its offering.
