PRESS RELEASE
19 February 2024
THE UNITE GROUP
PLC
('Unite
Students', 'Unite', the 'Group', or the 'Company')
NEW UNIVERSITY PARTNERSHIP -
UNITE STUDENTS ENTERS JOINT VENTURE FRAMEWORK AGREEMENT WITH
NEWCASTLE UNIVERSITY TO DEVELOP 2,000 BEDS
Unite Students, the UK's leading
owner, manager and developer of student accommodation, today
announces that it has entered into a joint venture ('JV') framework
agreement with Newcastle University for the development of 2,000
new student beds.
Highlights
·
Long-term strategic partnership with a Russell
Group university
·
Total development costs of c.£250 million (Unite
share: £128 million)
·
Unite to act as development and asset manager to
the JV with 51% ownership share
Unite Students and Newcastle
University have contracted to form a JV to develop 2,000 beds at
the University's Castle Leazes site in Newcastle for delivery in
2027 and 2028. The Castle Leazes site currently provides c.1,250
beds and was built in 1969. Newcastle University has committed to
close the existing accommodation on the site and commence
demolition in the summer of 2024.
Joe
Lister, Unite Students Chief Executive Officer,
commented:
"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.
"Unite
Students is uniquely positioned to help address the shortage of
student homes through our long-standing and trusted university
relationships, best-in-class operating platform and in-house
development capability. There is a significant opportunity to
become the partner-of-choice for universities as they seek to
unlock the potential of their campuses to deliver new accommodation
and access new funding."
Nick Collins, Executive Director of Finance, Newcastle
University, commented:
"We are delighted to partner with
Unite Students to redevelop Castle Leazes. This joint venture will
provide high-quality, affordable accommodation for our students and
help us continue to attract students from across the UK and around
the world to Newcastle University and our city."
Joint venture framework agreement
Newcastle University is a founding
member of the research-led Russell Group of Universities and 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 JV deepens our existing 20-year
relationship with Newcastle University. To support the University's
accommodation requirements during the development phase, the
Company has separately entered into a four-year nomination
agreement for 1,600 beds in other Unite Students properties in the
city.
Total development costs are c.£250
million, with main construction expected to commence in early 2025.
Newcastle University will own a 49% stake in the JV and contribute
the Castle Leazes site on a 150-year lease. Unite's equity
commitment is expected to be c.£70 million for a 51% stake with the
remaining funding coming from debt secured against the JV. The
project is expected to deliver returns comparable with developments
in regional cities. This also reflects the fees Unite will receive
as development and asset manager to the JV.
Entry into the JV is subject to
planning approval. Planning submission is expected by the end of Q1
2024, which would support formation of the JV before the end of
2024.
ENDS
For
further information, please contact:
Unite Students
Joe Lister / Mike Burt / Saxon
Ridley
Tel: +44 117 302 7005
Unite press
office
Tel: +44 117 450 6300
Powerscourt
Justin Griffiths / Victoria
Heslop
Tel: +44 20 7250 1446
About Unite Students
Unite Students is the UK's largest
owner, manager and developer of purpose-built student accommodation
(PBSA) serving the country's world-leading higher education sector.
We provide homes to 70,000 students across 157 properties in 23
leading university towns and cities. We currently partner with over
60 universities across the UK.
Our people are driven by a common
purpose: to provide a 'Home for Success' for the students who live
with us. Unite Students' accommodation is safe and secure, high
quality, and affordable. Students live predominantly in en-suite
study bedrooms with rents covering all bills, insurance, 24-hour
security and high-speed Wi-Fi. We also
achieved a five-star British Safety Council rating in our last
audit.
We are committed to raising
standards in the student accommodation sector for our customers,
investors and employees. This is why our Sustainability Strategy,
launched in 2021, includes a commitment to become net zero carbon
across our operations and developments by 2030.
Founded in 1991 in Bristol, the
Unite Group is an award-winning Real Estate Investment Trust
(REIT), listed on the London Stock Exchange. For more information, visit Unite Group's corporate
website www.unitegroup.com
or the Unite Students'
site www.unitestudents.com