Unite Students completes funding for 2,009-bed joint venture with Newcastle University

Unite Students will act as developer, asset manager and operator to the joint venture, with a 51% ownership stake. Newcastle University will hold 49% and contributes the Castle Leazes site on a 150-year lease.

The agreement with Newcastle University forms part of Unite’s pipeline of 4,300 new beds in university partnerships, for delivery between 2028 and 2030. The giant student landlord aims to strike one new partnership with a major university each year.

To support accommodation requirements during construction, Newcastle University has a multi-year nomination agreement with Unite for 1,600 beds at other properties in the city.

Joe Lister, chief executive of Unite Students, said: “By working together, we’re able to provide high-quality, affordable and sustainable homes that will enhance the residential experience for students.

“The development will also help to ease the shortage of student housing in the city and free up privately rented homes for local families.”

Nick Collins, chief financial officer at Newcastle University, said: “The redevelopment of Castle Leazes is an exciting strategic investment for the university and the formation of the joint venture with Unite represents an important milestone.

“By developing high-quality, sustainable accommodation close to campus, we will significantly enhance the student experience and strengthen our ability to continue to attract talented students to Newcastle.

“In addition to providing an income stream for the university, the redevelopment will also bring wider economic benefits to the city.”

Unite Students is the UK’s largest owner, manager and developer of purpose-built student accommodation, with 143 properties in 22 towns and cities.

Earlier this month, Unite Students won approval for another 605-bed student scheme in Paddington, west London, after London mayor Sadiq Khan stepped in to give it the green light.

This summer, Unite agreed to take over its rival student landlord Empiric through a cash-and-shares offer. The deal will create a combined portfolio worth approximately £10.5bn and including around 75,000 student beds.