Joint venture partners Zenzic Capital and Torsion Group have marked a significant milestone in the UK purpose-built student accommodation (PBSA) sector by successfully completing a £63 million refinancing of three stabilised assets. This strategic move has been facilitated through a partnership with an affiliate of Cerberus Capital Management, which reflects the growing confidence in the UK PBSA market.
Refinancing Details
The newly established five-year investment facility is designed to redeem three separate development loans, which were previously held against each asset by Zorin Finance, Ingenious Group, and Atelier Finance. This refinancing not only revitalises the financial structure of the joint venture but also underscores the strength of the assets involved.
Asset Overview
Located in key student cities—Warwick, Nottingham, and Leeds—the three assets collectively offer 476 beds, boasting an impressive current occupancy rate of 99%. These properties are managed by Torsion-owned LUNA, which highlights the effective operational strategy in place. Nadine Buckland, CEO of Zenzic Capital, stated, “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.”
Market Insights and Future Growth
Buckland emphasised that despite facing challenges in certain areas of the PBSA sector, the high occupancy levels serve as a testament to the quality of their assets, which are strategically located in prime micro locations within popular student cities. The professionalism and operational excellence exhibited by Torsion’s LUNA platform further enhance the appeal of these properties. Looking ahead, both companies are eager to explore opportunities for portfolio growth through acquisitions and new developments.
Leadership Perspectives
Dan Spencer, CEO of Torsion Group, echoed Buckland’s sentiments, calling the refinancing a significant achievement for their joint venture. He remarked, “It reflects the successful delivery and stabilisation of these assets and demonstrates the strength of our fully integrated model across investment, development, and operations.”
Spencer expressed gratitude towards their partners at Zenzic, Cerberus for the new investment facility, and the support from Zorin Finance, Ingenious Group, and Atelier Finance throughout the development phase. He added that this refinancing not only validates the quality of the assets and the performance of the LUNA operating platform but also provides a solid foundation for future growth.
Investment Confidence
Marco Rampin, managing director at Cerberus, commented on the alignment of the partnership with their strategy to collaborate with top sponsors on high-quality real estate ventures. He noted, “We continue to see strong fundamentals in the UK student sector and look forward to seeing this brand new portfolio through stabilisation.”
Additionally, Martin Sheridan, partner at Art Capital, expressed enthusiasm regarding the support provided to the Zenzic Capital and Torsion joint venture in securing this capital solution from Cerberus, highlighting that the debt package achieved is a testament to the expertise and dedication of the JV in the living sector over the years.