Unite Students and Newcastle University partner on PBSA

UK PBSA developer Unite Students and Newcastle University have formed a joint venture to develop a new 2,009-bed student accommodation project called Castle Leazes. 

Castle Leazes, Newcastle

This marks the UK's first partnership of its kind, featuring an innovative co-created funding structure.
Unite Students will hold a 51% ownership, acting as developer, asset manager, and operator, while Newcastle University will contribute the Castle Leazes site with a 150-year lease, holding a 49% stake. The project will replace the university's former 1960s-era 1,250-bed accommodation, which was demolished last year.
Construction has now begun, following Gateway 2 approval from the Building Safety Regulator. The first phase, comprising 788 beds, is expected to open for the 2028/29 academic year, with the remaining 1,221 beds ready for 2029/30.
The new student village will feature modern, energy-efficient, brick-clad buildings ranging from four to nine storeys, designed to create a contemporary townhouse environment. The development will offer a variety of room types, enhanced communal spaces including social hubs, games rooms, study areas, and outdoor courtyards, all with sustainability at their core, aiming for significant energy and carbon reductions through efficiency and on-site renewable energy.
Joe Lister, chief executive at Unite Students, said: “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.”   
Nick Collins, CFO, Newcastle University, said: “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.”  
Unite Students owns more than 143 properties in 22 leading university towns and cities in the UK.