Unite Group plc said its student accommodation developer Unite Students acquired an asset under development near the University of Durham for £34 million.
The accommodation will open in September 2018 and house 363 students.
The unit is expected to deliver a yield on cost of 6.4% in its first year of operation.
“Durham is a world-class university with a growing student population,” said Unite.
“The acquisition grows our presence in this highly attractive university city.”
Richard Simpson, group property director, said: “This latest acquisition further extends our high-quality development programme in a strong regional location where there is strong demand for purpose built student accommodation.
“Our strategy remains focused on high quality universities like Durham, where we see sustainable growth.”