(Sharecast News) - Student accommodation specialist Unite Group announced a joint venture with Newcastle University on Monday, for the development of 2,000 new student beds.
The FTSE 100 company said the collaboration with the Russell Group university would have total development costs estimated at £250m, of which Unite would bear a share of £128m.
Under the deal, Unite would assume the role of development and asset manager, securing a majority ownership share of 51% in the joint venture.
The development would take place at the Castle Leazes site at Newcastle University, currently accommodating around 1,250 students and established in 1969.
Newcastle University would shutter the existing accommodation facilities on the site, with plans to start demolition during the summer of 2024.
"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," said chief executive officer Joe Lister.
"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."
At 0830 GMT, shares in Unite Group were down 0.2% at 1,000p.
Reporting by Josh White for Sharecast.com.
Unite (UTG)