It marks a significant milestone for McAleer & Rushe which is now set to deliver 7,500 student beds over the next five years.

It is also currently under contract to deliver two schemes for Unite – a 750-bed scheme for in Stratford, London, and a 700-bed scheme in the North East of England.

McAleer & Rushe’s latest design and build deal to build 1,000 beds in Portsmouth and 600 beds in Bournemouth is subject to planning.

The £100m development plan was agreed after Knightsbridge Student Housing bought both sites from the Northern Irish group.

Knightsbridge Student Housing is led by Bob Crompton, who was the former CEO of student provider Victoria Hall.

He has stated Knightsbridge’s intention is to rapidly build up an £1bn portfolio. It has already some 6,500 beds currently operational and almost 10,000 beds at varying stages of planning, design and construction.

The first phase of the Portsmouth scheme, on Stanhope Road, will see the former landmark office, Zurich House, converted to provide 400 student beds, with a purpose built second block housing a further 600 students.

The firm is look at developing the remaining two-thirds of the site with a hotel, residential and commercial scheme. 

Student housing will make up around half of the site in Bournemouth on St Paul’s Road, with the remainder of the site being allocated to offices, and possibly a new hotel.

Planning submissions are targeted for early 2015 which would see construction work begin in summer 2015.

McAleer & Rushe Project Development Director Graham Mitchell said: “McAleer and Rushe has ambitious targets for student housing construction, which is a very logical extension for us.

“We are delighted to be working with Knightsbridge and look forward to working together on other projects.

“This deal unlocks the regeneration of important sites in Bournemouth and Portsmouth, and is an important vote of confidence in the economic recovery of both cities.”