The 50-year concession contract involves the design, build and maintenance of accommodation facilities for 1,160 postgraduate students, as well as an outreach centre for the university.
Balfour Beatty will invest 100% of the required equity in the project, which is expected to reach financial close in spring 2013.
Ian Tyler, Balfour’s chief executive, said: “We are delighted to have been selected as preferred bidder for this long-term contract in the student accommodation sector, which is a key area of focus for us.
“We have worked with the University of Edinburgh on numerous projects over the past 18 years and look forward to supporting them in realising their long-term aspirations to enhance the postgraduate student experience.”
Balfour Beatty currently has a portfolio of student accommodation design and build contracts across worth over £120m.
Nigel Paul, director of corporate services at the University of Edinburgh, said: “This is an important project for the University and we are pleased to have reached this key milestone in delivering our plans for the Holyrood campus.”