A £20.3m forward funding deal has been agreed between Prosperity Student Living Derby, a joint venture between Prosperity Capital Partners Ltd and London and UK Property Ltd, and Aviva Investors REaLM for a new student accommodation development in Derby city centre.

The development, which has been pre-let to the University of Derby for a term of 30 years, comprises 350 ensuite bedrooms, arranged in cluster flats with communal living areas, as well as a laundry, management office and bike storage and will be operated by the University's own brand, "Derby Student Living".

Gavin Barry, CEO of Prosperity Capital Partners, said: "This site is being developed first and foremost with students in mind. It will be a sought after term-time base for students from the UK and abroad, offering well-specified, market-leading accommodation close to the heart of the city, with leisure and retail facilities within easy reach.

"The development itself has been structured to give the university a short and medium term income stream and eventual ownership of the asset in a way that minimises risk - agreeing its lease following planning consent and with forward funding in place - while ensuring that the quality of the end result meets the high standards they set for their students."

The 0.234 ha (0.6 acre) site is located on Cathedral Road in Derby city centre on a former car park site, opposite the Queen's Leisure Centre, and is part of the Cathedral Quarter.

It was granted planning consent in March 2015 and completion is planned for the start of the 2016/17 academic year.