Unite finalises Newcastle JV to deliver 2,009 new student beds

(Sharecast News) - Student accommodation provider Unite Group has finalised the formation of its joint venture partnership with Newcastle University to deliver 2,009 new student beds at Castle Leazes. Unite said joint venture funding had been completed and construction of the new development was now underway. Phase one, the first 788 beds, will open in time for the start of the 2028/29 academic year, while the remaining 1,221 beds in phase two will be ready for 2029/30.

The FTSE 250-listed firm said the development will replace Newcastle University's former 1,250-bed accommodation, which was built in the 1960s and demolished last year.

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

To support accommodation requirements during the development phase, Newcastle University and Unite also reached a multi-year nominations agreement for 1,600 beds at other properties in the city.

Chief executive Joe Lister 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.

"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. It also reflects Unite's wider programme of long-term university partnerships, where we are targeting one new agreement each year."

As of 0910 GMT, Unite shares were down 0.82% at 543.50p.

Reporting by Iain Gilbert at Sharecast.com