Balfour Beatty will stump up 10% of the required equity in the project, which is expected to reach financial close in mid-2013.

Balfour Beatty CEO Designate, Andrew McNaughton, said: “We are delighted to have been selected as preferred bidder for this long-term contract in the student accommodation sector, our second success in this area in five months.

“We look forward to working with the local supply chain to deliver this project.”

The deal brings Balfour Beatty’s tally of student accommodation design and build contracts to more than £120m, including the University of Edinburgh’s £110m student accommodation project.