Karis Capital has arranged a £25.25m development loan for joint venture partners Zenzic Capital and Torsion Group to deliver a 183-unit student accommodation development in Leeds.

The capital sourced by Karis will enable Zenzic and Torsion to tackle the current shortage of high-quality PBSA sites across the UK, which has compelled the partners to build a portfolio of projects with a Gross Development Value (GDV) of over £500m.

Zenzic Capital, a real estate investment firm; and Torsion Group, a contractor and developer with an extensive track record, approached Karis Capital to secure a well-structured finance agreement to allow them the freedom and flexibility to deliver an attractive, high-quality development within a key location of the popular student city.

And the new development comes at an exciting time for the UK’s Northern property sector, as properties in Leeds have seen strong price rises over the last year, with values increasing by 6.1% – £14,459 on average – compared with the marginal rise of 2.5% countrywide over the past 12 months.

This has been fuelled largely by multi-city centre regeneration projects, with developers attracted by a burgeoning lettings market driven by student demand.

Nadine Buckland, chief executive of Zenzic Capital, said: “The loan structure achieved allows the JV to deliver this exceptional project, which will play a major role in meeting the rapidly-growing demand for premium student accommodation across the city of Leeds.”

Nicholas Christofi, chief executive and co-founder of Karis Capital, adds: “When we were approached by the JV partners on this project we could immediately see the potential in the final product.

“This was a major factor in securing the best-possible terms, which will afford the project team the freedom and flexibility to concentrate on delivering a market leading development.

“It is a privilege to contribute to such a large-scale and impressive project that will benefit the students of Leeds and surrounding community.”