Developer and managing company for accommodation Unite Students has secured a project to develop a site in central Birmingham.
The new site will provide accommodation for about 600 students with a total project cost estimated at £40m, which includes land and development costs.
It is expected to be completed by 2019 and will be funded through internal sources.
The construction site is located close to Aston University and Birmingham City University adjacent to the operational Unite building.
These two institutions have a combined headcount of around 28,085 full-time students and the building could lead to an increase Unite's bed count in Birmingham up to 3,300 across its five properties.
Unite Students' property managing director Richard Simpson said: "This central Birmingham site fulfils our criteria for growth and investment returns in a strong, regional location. We are delighted to have exchanged contracts to acquire it.
"Birmingham is a thriving university city and home to four Higher Education providers, offering a wide range of highly respected courses. When complete, the new property will provide a safe and secure home for the growing number of students attracted to Birmingham."