UK: Newcastle University and the University of Sussex have partnered with Unite and Balfour Beatty respectively to deliver nearly 4,000 new student beds.
Unite‘s £250 million partnership with Newcastle University will see 2,000 beds delivered. Unite will act as development and asset manager to the JV and will have a 51 per cent ownership share.
The partnership will deliver the beds at the university’s Castle Leazes site in Newcastle for delivery over the next four years. The site currently provides 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.
Unite chief executive Joe Lister 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.
“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, he added.
Entry into the joint venture is subject to planning approval. Planning submission is expected to be awarded by the end of March which would support formation of the JV before the end of 2024.
In the south of the country, Balfour Beatty is set to build 1,899 beds with the University of Sussex in a £200 million deal.
Balfour Beatty’s agreement with the university is made up of a £32 million equity investment by the contractor, which is 81 per cent of the project equity. The university will cover the rest of the equity, while Balfour Beatty is raising £171 million of wrapped bond financing to the project through private placement.
Balfour Beatty’s venture will also see the development of a new health and wellbeing centre at the West Slope Residences site in Brighton, as well as new catering and retail facilities.
The contractor has committed to using modular construction techniques throughout the process, which it said will significantly reduce carbon emissions by decreasing the number of lorry journeys to and from the site.
The contractor’s public-private partnership arm, Balfour Beatty Investments, signed a 54-year contract with the university that will see it finance and maintain the site after completion. Work has already begun, with Balfour Beatty expecting the site to be ready for the start of the 2026/27 academic year. Around 450 people, including 150 apprentices and graduates, will be employed on the scheme.
