Newcastle University

QMPF provided financial advice and transaction support to Newcastle University as it entered a joint venture framework agreement with Unite Students for the redevelopment of the University’s Castle Leazes site.

The JV represents a long-term strategic partnership between the parties, with Unite acting as development and asset manager, leveraging its experience as the UK’s largest owner, manager and operator of purpose-built student accommodation.  The Castle Leazes redevelopment is expected to provide new 2,000 bedspaces and replace existing stock of 1,250 beds. The total development costs of the scheme are estimated at approximately £250m.

Newcastle University will own a 49% stake in the joint venture project and contribute a 150-year headlease for the site. QMPF supported the University team with review of the financial and commercial terms of the offer, alongside options analysis which was underpinned by financial modelling and sector benchmarking.

A planning application for the new development and demolition of the current accommodation has been submitted to Newcastle City Council in April 2024.

Nick Collins, Executive Director of Finance, Newcastle University:

“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.”

Unite Students press release:  https://www.unitegroup.com/articles/unite-students-enters-joint-venture-with-newcastle-university