The 200,000 ft scheme will have a total development cost of £31m and is targeted to open in 2016.
Located close to the city’s two universities, the new property will expand Unite’s existing presence in Newcastle, where it boasts four properties with over 1,000 beds.
The new building, which requires planning, will include communal space designed to enhance students’ living and learning experience, Unite’s latest specification en-suite cluster rooms, WiFi internet and LED lighting.
Richard Simpson, Managing Director of Property for Unite said: “This acquisition marks good progress with Unite’s selective regional development programme and is a prime example of how we are investing the proceeds from our 2013 share placing.”
He added: “The fundamentals of the student accommodation market remain strong and will potentially be bolstered further by the Government’s plans to remove the student number cap in 2015, which could itself lead to an increase in enrolments of up to 12%.
“Unite is well positioned for continued growth both through its existing, strong portfolio and new regional developments.”