Zenzic Capital and Torsion Group agree £63 million refinancing of three UK student accommodation assets

A joint venture (the “JV”) between Zenzic Capital (“Zenzic”), a real estate credit and special situations investment firm, and Torsion Group (“Torsion”), a vertically integrated real estate developer, contractor and operator, has agreed a £63 million refinancing for three of its UK purpose-built student accommodation (PBSA) assets now they have been successfully developed and stabilised.

Provided by an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), the new five-year investment facility redeems three development loans which were held individually against each asset from Zorin Finance, Ingenious Group and Atelier Finance.

The refinancing marks an important milestone for the strategy and will support the JV’s growth ambitions to create a c. £500 million GDV portfolio of over 2,000 beds through investment in existing stock and the development of new assets.

The three assets comprise 476 beds in total which are currently 99% occupied in their first year of opening and are operated by Torsion-owned LUNA.

Each scheme is supported by an impressive amenity provision including gym, study spaces, private dining rooms, cinema rooms and both indoor and outdoor community areas to promote student wellbeing and social interaction.

Burnsall House is located in Warwick, serving both the University of Warwick and University of Coventry, while Trapezium and Burley Studios are both located in the popular student city of Leeds, which attracts over 210,000 students annually.

The two other assets in the JV include a 137-bed asset in Nottingham and a 205-bed asset currently under development in Leeds.

The Leeds asset, Kirkstall Road, which is due to complete in time for the 2027-28 academic year, will offer coworking space, a communal lounge and gym.

In line with the Zenzic and Torsion’s commitment to sustainability and student wellbeing across both completed and future assets, the JV is targeting Fitwel three-star and BREEAM ‘Excellent’ certifications at Kirkstall Road.

Nadine Buckland, CEO of Zenzic Capital, commented:

“This refinancing is an important milestone for the JV and reflects the work we have done with Torsion to stabilise these three assets, while providing firepower for further expansion.

Despite challenges in some parts of the PBSA sector, the JV’s high occupancy levels are testament to the quality of our assets, which are situated in the best micro locations within popular student cities, as well as the professionalism and excellence of Torsion’s operating platform, LUNA.

We look forward to working with our partners to grow the portfolio through acquisition or development opportunities in the months ahead.”

Dan Spencer, CEO of Torsion Group, added:

“This refinancing is a significant milestone for Torsion and for our joint venture with Zenzic.

It reflects the successful delivery and stabilisation of these assets and demonstrates the strength of our fully integrated model across investment, development and operations.

We are hugely grateful to our JV partners at Zenzic, to Cerberus for providing the new investment facility, and to Zorin Finance, Ingenious Group and Atelier Finance for their support throughout the development phase.

Completing this refinancing not only validates the quality of the assets and the performance of our LUNA operating platform, but also provides a strong foundation for the next phase of growth.

It is a clear example of how, when executed well, the PBSA sector can deliver resilient, full-cycle outcomes and long-term value, and we look forward to continuing to grow the portfolio together.”

Marco Rampin, Managing Director for Cerberus, said:

“This partnership is well aligned with our strategy in partnering with top sponsors on high-quality real estate opportunities.

We continue to see strong fundamentals in the UK student sector and look forward to seeing this brand new portfolio through stabilisation.”

Martin Sheridan, Partner at Art Capital, added:

“Art Capital are thrilled to have supported the Zenzic Capital and Torsion JV in sourcing this capital solution from Cerberus.

The debt package achieved is testimony to the smart investment, hard work and expertise the JV has in the Living Sector over a number of years.”

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