Unite Students announced that it has entered into a Joint Venture (JV) framework agreement with Newcastle University for the development of 2,000 new student beds at Newcastle University’s Castle Leazes site in Newcastle, UK.

The current accommodation at the Castle Leazes site, comprising approximately 1,250 beds and established in 1969, is slated for closure and subsequent demolition by Newcastle University, starting in the summer of 2024. To address its housing needs during the development phase, Unite has separately engaged in a four-year nomination agreement for 1,600 beds within other Unite Students properties in the city. The overall project's development costs are estimated at around GBP 250 million (US$ 315 million), Unite's share being GBP 128 million (US$ 161.3 million), with the primary construction anticipated to commence in early 2025.

In the JV, Newcastle University will hold a 49% stake, contributing to the Castle Leazes site through a 150-year lease. Unite's equity commitment for a 51% stake is expected to be approximately GBP 70 million (US$ 88 million), with additional funding sourced from debt secured against the JV. Planning is set to be submitted by the end of Q1 2024, supporting the establishment of the JV before the close of 2024. The delivery of the 2,000 new purpose-built student accommodation beds is projected for 2027 and 2028.