Joint venture partners Zenzic Capital and Torsion Group have completed the £63m refinancing of three stabilised UK purpose-built student accommodation (PBSA) assets with an affiliate of Cerberus Capital Management (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 assets in Warwick, Nottingham and Leeds (pictured) provide 476 beds, are currently 99% occupied, and are operated by Torsion-owned LUNA.
Nadine Buckland, CEO of Zenzic Capital, said: “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 at 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.”
