Joint venture to deliver 2009-bed student scheme

A student housing scheme is moving ahead in Newcastle following a landmark partnership.

Unite Students and Newcastle University have finalised a joint venture to deliver 2009 new student beds at Castle Leazes, marking the first partnership of its kind in the UK. 

The agreement brings together a new funding structure co-created by both parties, with Unite Students holding a 51 per cent stake and acting as developer, asset manager and operator, while Newcastle University retains 49 per cent ownership and contributes the site on a 150-year lease.

The development will replace the former Castle Leazes accommodation, a 1250-bed complex built in the 1960s and demolished last year to make way for a modern, purpose-built student village. 

Construction is now underway after the Building Safety Regulator granted Gateway 2 approval.

Bosses say the scheme will be delivered in two phases, with the first 788 beds scheduled to open for the 2028/29 academic year and the remaining 1221 beds following in 2029/30. 

Joe Lister, chief executive at Unite Students, said: “We’re excited to move forward with the construction of Castle Leazes now that we’ve completed the funding and formalised the joint venture.  

“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.

“Purpose-built student accommodation is fundamental to the UK’s higher education sector, and this partnership demonstrates the real benefits such collaborations can deliver for students, universities and local communities.” 

The finished development will comprise brick-clad buildings of four to nine storeys, designed to create a contemporary townhouse-style environment.

Alongside new accommodation, the project will deliver enhanced communal and social spaces, energy-efficient buildings and on-site renewable energy generation. 

To manage demand during construction, Newcastle University has also agreed a multi-year nominations arrangement with Unite Students for 1600 beds across the city.

Nick Collins, chief financial officer at Newcastle University, added: “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.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →