Following Unite Students and Newcastle University entering into a joint venture, the pair’s Castle Leazes purpose-built student accommodation (PBSA) scheme is set to be approved for a £274m redevelopment.
Two PBSA blocks with more than 2,000 bedrooms will replace Newcastle University’s Castle Leazes halls of residence, which is being demolished. The university said the new buildings would help deal with an ‘immediate and pressing shortage’ of student beds.
Castle Leazes, which was built in the 1960s, was put forward for demolition after it was deemed outdated. The replacement scheme would be built around five courtyards with the housing blocks ranging between four and nine storeys in height. There will also be a gym, a café, a cinema room and study space.
The total development costs for the project is c.£250m (Unite’s share is £128m), with main construction expected to start in early 2025. Newcastle University will own a 49% stake in the joint venture and will contribute the Castle Leazes site on a 150-year lease.
Unite’s equity commitment is expected to be c.£70m for a 51% stake, with the remaining funding coming from debt secured against the joint venture.
Newcastle University is a founding member of the research-led Russell Group of Universities. It was ranked 37th in the UK by the Times & Sunday Times Good University Guide in 2024 and 110th in the QS World University Rankings 2024.
The plans are recommended for approval, with a decision set for Friday 16 May 2025.
