The firm also revealed it is in talks  to acquire two further sites in similarly strong regional locations and which are expected to exchange later in the first quarter of 2014.

The 120,000 sq  ft Aberdeen scheme, is the fifth in the city, and is expected to have a total development cost of £20m and needs planning consent.

The site is currently occupied by a derelict, listed school building, and the development will include its refurbishment as part of the design of the property. The listed building, once renovated, will house 18% of bedrooms.

It will be transformed into a home for 400 students and is targeted to open for the 2016/17 academic year.

The scheme will be the second project to be funded from the proceeds of the group’s June 2013 share placing following the acquisition of a site in Newcastle in January, and these two ventures account for approximately 40% of the capital raised.

When contractually secure, these two further projects will account for the remainder of the June 2013 share placing. 

Richard Simpson, managing director of property for Unite said: “This acquisition marks further 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.”