Newcastle University and Unite Students, the UK’s largest provider of student accommodation, have finalised the formation of their Castle Leazes joint venture to develop new accommodation for 2,009 students. 

The joint venture partnership is the first of its kind in the UK, built on a new funding structure that has been co-created by the two parties.

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

The new development will replace the university’s former 1,250-bed Castle Leazes accommodation, which was built in the 1960s and demolished last year to make way for a modern, fit for purpose development.

The first phase of 788 beds)of the new, reimagined Castle Leazes development will be completed for the start of the 2028-29 academic year with phase two of 1,221 beds ready for 2029-30.

The Building Safety Regulator has granted Gateway 2 approval for the construction of Castle Leazes and contractors have begun early groundwork, laying the foundations for the new building.

Unite Students CEO Joe Lister 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.”

Newcastle University Chief Financial Officer Nick Collins 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.”