Unite Group and Newcastle University Form Joint Venture for Student Accommodation Development
Unite Group has partnered with Newcastle University to develop 2,000 new student beds, with an estimated project cost of £250 million ($315 million). This collaboration between the student accommodation provider and the prestigious university signifies a milestone in the development of student housing projects.
Under the framework agreement, Newcastle University will hold a 49% stake in the joint venture, contributing the Castle Leazes site under a 150-year lease. Unite Group will provide approximately £70 million for a 51% stake, with additional funding obtained through debt financing.
Construction is set to commence in early 2025, addressing the increasing demand for student accommodation and providing essential living spaces for students. Joe Lister, the CEO of Unite Group, expressed enthusiasm about the partnership, highlighting the opportunity for the company to optimize university campuses and secure additional funding.
This joint venture underscores the escalating need for student housing and the value of collaborations between accommodation providers and educational institutions. As the student housing market expands, partnerships like this are pivotal in catering to the requirements of the growing student population.
Analyst comment
Positive news. This joint venture between Unite Group and Newcastle University demonstrates the demand for student housing and the potential for growth in the sector. Construction of 2,000 new student beds will provide much-needed accommodation, and Unite Group has the opportunity to become a preferred partner for universities, optimizing campuses and accessing additional funding. The market is likely to benefit from this collaboration and the expansion of student housing.
