Zenzic Capital has launched a new UK purpose-built student accommodation strategy with a target portfolio GDV of more than £500m.
Through the strategy, Zenzic will invest in existing stock and develop new assets to help address the UK’s acute shortage of high-quality student accommodation.
Zenzic has acquired its first five schemes with a total GDV of more than £147m through a joint venture with Torsion Group.
The jv is targeting a total portfolio GDV of more than £250m across seven schemes and aims to deliver 1,566 rooms by the end of this year.
The first five schemes with Torsion, located in Leeds, Nottingham and Warwick, will comprise 817 beds and include en suite bedrooms; social, fitness and wellbeing spaces; study zones; and recreational areas.
Two of these schemes, in Leeds and Nottingham, are newly built and already fully let. The other three are under construction in Warwick, Nottingham and Leeds.
The three new developments will be delivered by Torsion in time for the start of the 2025/26 academic year and will be operated by Torsion-owned Luna Students.
Nadine Buckland, chief executive at 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.”
Dan Spencer, chief executive at Torsion Group, said: “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.”
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