Unite Students has entered into a joint venture framework agreement with Newcastle University for the development of 2,000 student beds.
The pair will develop the accommodation at the university’s Castle Leazes site in Newcastle for delivery in 2027 and 2028. The Castle Leazes site currently provides 1,250 beds and was built in 1969.
Newcastle University has committed to close the existing accommodation and commence demolition in the summer of 2024.
Total development costs are expected to be around £250m, with construction targeted to start in early 2025.
Newcastle University will own a 49% stake in the jv and contribute the Castle Leazes site on a 150-year lease. Unite’s equity commitment is expected to be £70m for a 51% stake, with the remaining funding coming from debt secured against the jv.
Unite chief executive Joe Lister said: “Partnering with Newcastle University to redevelop Castle Leazes and deliver 2,000 beds of high-quality, affordable accommodation for students is a hugely exciting step for Unite Students.
“The partnership will provide further support to Newcastle University in meeting its accommodation needs at a time of real housing shortage.“
He added: “There is a significant opportunity to become the partner-of-choice for universities as they seek to unlock the potential of their campuses to deliver new accommodation and access new funding.”
Nick Collins, executive director of finance at Newcastle University, said: “This joint venture will provide high-quality, affordable accommodation for our students and help us continue to attract students from across the UK and around the world to Newcastle University and our city.”
The formation of the jv is subject to planning approval. Plans for the new development is expected to be delivered before the end of Q1 this year.
Image from Unite Students
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