Unite Students has announced that it has entered into a joint venture framework agreement with The Manchester Metropolitan University for the development of 2,300 new PBSA bedrooms at the University’s Cambridge Halls site. The company revealed its initial plans in January this year.
Cambridge Halls, which was constructed in the 1990s, provides 770 beds which no longer meet the needs of students. Manchester Metropolitan University has committed to close the existing accommodation on the site, with work due to start on-site later this year.
The plans, drawn up by Cartwright Pickard, is to knock down existing student rooms and deliver the new accommodation across various buildings. Submission of the planning application for the joint venture development is expected later in the second quarter, which would support the formation of the joint venture around the end of 2025.
The Cambridge Halls development, which sits at the heart of the city’s university quarter, will increase Unite’s operational platform in the city to almost 8,000 bedrooms at completion, helping to deliver operational efficiencies.
“We are delighted to announce our partnership with Unite Students for the redevelopment of Cambridge Halls. This joint venture will provide much needed additional purpose-built student accommodation in Manchester, right on the doorstep of our University. The project will not only enhance the quality of housing for students, but also benefit the surrounding community through new health, wellbeing, and retail offerings.”
Andrew Fallon, Chief Property Officer, Manchester Metropolitan University
Total development costs for the Cambridge Halls project are around £390m and construction is expected to start in 2026. Manchester Metropolitan University will own a 30% stake in the joint venture, reflecting the contribution of the Cambridge Halls site. Unite’s equity commitment is expected to be around £125m for a 70% stake, which will be funded from internally generated sources, with the remaining funding coming from debt secured against the joint venture.
The project is expected to deliver returns comparable with developments in regional cities, which also reflects the fees Unite will receive as development and asset manager to the joint venture.
To support the University’s accommodation requirements during the development phase, the company has separately entered into a five-year nomination agreement for 2,550 beds in other Unite Students’ properties in Manchester.
“Partnering with Manchester Metropolitan University to redevelop Cambridge Halls and deliver much needed, high-quality and affordable accommodation for 2,300 students is a hugely exciting step for Unite Students. Our joint-venture partnership will provide further support to Manchester Metropolitan University in meeting their accommodation needs at a time of real housing shortage, so 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. Our second university partnership underlines the growing attractiveness of our offer to university partners as they seek to unlock the potential of their campuses to deliver new accommodation and access funding. This has the added benefit of freeing up privately rented houses in the community for families.”
Joe Lister, Chief Executive Officer, Unite Students
Having celebrated its 200-year anniversary in 2024, Manchester Metropolitan University is the UK’s seventh largest university by student numbers and the fourth largest educator of undergraduate students.
The university is ranked 46th in Times UK University Guide and 85% of full-time students come from the UK, significantly above the 70% sector average. The joint venture will deepen Unite Students’ longstanding relationship with Manchester Metropolitan University, where the company has provided beds under nomination agreements for over 20 years.
Manchester is the UK’s second-largest university city with over 100,000 full-time students studying at four universities. There is a shortage of PBSA in Manchester with 3.6 full-time students per bed, driving demand for new accommodation (national average: 3.2).
