Torsion Group and Zenzic Capital have hit a further milestone in their £250m purpose-built student accommodation (PBSA) strategy, with finance and planning now secured for their Kirkstall Road scheme in Leeds. Work on-site is scheduled to begin in October 2024.
Zenzic Capital has provided a preferred equity facility for the development of the £43.5m gross development value (GDV) scheme.
The Kirkstall Road development will comprise 205 studio rooms across 10 floors. It will include communal spaces, roof gardens, a gym, social lounge, cycle storage and study areas.
The asset will be built to a modern, high quality specification and is targeting a BREEAM Excellent rating and a 3 Star Fitwel Certification.
“Kirkstall Road has become the latest high profile PBSA development to benefit from our ongoing strategic partnerships with leading finance companies. Completing the joint venture means that it now becomes the latest in a series of large PBSA developments we have in our pipeline.”
“I am proud of the way in which our team at Torsion Developments and Torsion Construction worked together to design the project to budget and deliver a scheme that remains high quality and fundable even in the current challenging markets. I firmly believe that the professionalism of our team and our solutions based approach to Develop, Construct, Operate provided Zenzic and Atelier with the certainty of a successful outcome.”
“Having worked with both partners on several other developments means we are confident that Kirkstall Road will soon become an important part of the LUNA Students property portfolio. There is a pressing need for high quality accommodation in the sector, and we are proud to be helping deliver solutions with our partners.”
Dan Spencer, chief executive officer, Torsion Group
The Kirkstall Road project is being undertaken as part of Zenzic Capital’s joint venture with Torsion, which now comprises five major schemes all located in Russell Group university cities where there is an acute shortage of high-quality PBSA.
“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. By carefully selecting the right development partner, we are therefore confident of enhancing returns for our investors.
“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
Torsion Construction is acting as main contractor to undertake all aspects of on-site delivery, with Torsion Developments acting as the Development Managers throughout the duration of the project.
Once the project is completed and handed over, it will be operated by LUNA Students, which is part of Torsion Group and is one of the leading property management experts in the student accommodation sector.
“Our PBSA offering in Leeds has reached a significant milestone with over 500 beds, solidifying our position as a leading provider in the city. This expansion not only reinforces our commitment to Leeds, but allows us to deliver an unparalleled living experience for students on their university journey. By offering a high-quality, safe environment, we’re providing a home away from home for young adults taking their first steps towards independence.
“Our substantial presence in Leeds enables us to create a supportive community atmosphere while simultaneously achieving significant operational efficiencies. Kirkstall Road strengthens our business model, ensuring we can continue to invest in and improve our services for the next generation of students.”
Louise Bena, Managing Director, Luna Students
Senior debt for the scheme is being provided by Atelier, a specialist finance company that delivers bespoke development finance solutions. The £30.8m development finance loan mwill support the delivery of the scheme.
Torsion Group, Zenzic Capital and Atelier have worked together previously on successful project deliveries – including large PBSA developments across the north of England and Midlands.
“Torsion’s proven track record in delivering high-quality PBSA means we are delighted to partner with them once again on this latest development in Leeds.
“We worked closely with the Torsion team to structure an effective facility which will enable them to secure the site and deliver the project. Key to the success in this deal is the trust built up between all of the project partners.
“As a business, we remain strategically aligned with Torsion’s goal of delivering high-quality, affordable student accommodation.”
Rav Kudhail, Lending Director, Atelier
