London-listed student accommodation provider Unite has entered into a joint venture with Newcastle University for the development of 2,000 new student beds.
In an update this morning, Unite said its subsidiary, Unite Students will work with the university to deliver the accommodation in 2027 and 2028.
Newcastle University has committed to close the existing accommodation on the site and commence demolition in the summer of 2024.
The joint venture will see the university’s current Castle Leazes accommodation demolished in the summer of 2024, and works will then commence to rebuild the property.
Castle Leazes was first constructed in 1969 and is located 10 minutes from campus. Total development costs are predicted to reach £250m.
Joe Lister, Unite Students chief executive officer, said: “Partnering with Newcastle University to redevelop Castle Leazes and deliver 2,000 beds of high-quality, affordable accommodation for students is a hugely exciting step for Unite Students.
“The partnership will provide further support to Newcastle University in meeting their accommodation needs at a time of real housing shortage, so that they can focus on providing a world-class experience for their students.”
News of the development comes as an increasing number of students are struggling to find accommodation.
A study by Savills last year showed there were around three students per available bed in purpose-built student accommodation.
At the time, the estate agent said universities have had to take “extreme action” to combat the shortage.
“The University of York and the University of Bristol have housed students in neighbouring towns and cities, the University of Edinburgh has converted common rooms into dorms with bunk beds, and the University of Glasgow has put students in hotels,” they said.
“Meanwhile, students in Durham queued overnight outside letting agents to secure accommodation.”