Gateway 2 approval sees partners finalise Castle Leazes JV

The Building Safety Regulator has rubber-stamped the 2,000-bedspace proposal from Unite Students and Newcastle University, triggering the start of groundworks and the formalisation of the scheme’s funding structure.

Set to replace the 1960s-built 1,250-bed Castle Leazes student accommodation, demolished last year, the £274m project will see Unite Students become developer, asset manager and operator with a 51% ownership stake.

The university will hold 49% and contribute the Castle Leazes site on a 150-year lease.

Castle Leazes’ first phase will include 788 beds, due to be completed for the start of the 2028/29 academic year with phase two (1,221 beds) ready for 2029/30. To support accommodation requirements during development, Newcastle University has a multi-year nominations agreement with Unite Students for 1,600 beds in the city.

The student village will comprise small clusters of brick-clad buildings of four to nine storeys, intended to create a modern, townhouse environment.

One of the aims of the redevelopment project is to create more communal spaces than the previous development.

Joe Lister, chief executive at Unite Students, said: “We’re excited to move forward with the construction of Castle Leazes now that we’ve completed the funding and formalised the joint venture.

“By working together, we’re able to provide high-quality, affordable and sustainable homes that will enhance the residential experience for students. The development will also help to ease the shortage of student housing in the city and free privately rented homes for local families.

“Purpose-built student accommodation is fundamental to the UK’s higher education sector, and this partnership demonstrates the real benefits such collaborations can deliver for students, universities and local communities.”

Norr Architects is the designer of the scheme, with Pegasus advising on planning. Consent was secured last spring.

Nick Collins, chief financial officer of Newcastle University, said: “The redevelopment of Castle Leazes is an exciting strategic investment for the University and the formation of the joint venture with Unite represents an important milestone.

“By developing high-quality, sustainable accommodation close to campus, we will significantly enhance the student experience and strengthen our ability to continue to attract talented students to Newcastle.

“In addition to providing an income stream for the University, the redevelopment will also bring wider economic benefits to the city.”