Urban Creation is to recycle profit from sales last year to develop more than 400 student beds this year.
The Bristol-based developer has completed the purchase of two sites in the city to deliver £20m of new projects.
Advised by Savills, it has bought Prince William House and Matthew House on Colston Street, Bristol, for a Studio Henley-designed 80-bed conversion.
Meanwhile, on Colston Avenue it has bought the 23,000 sq ft Centregate, which it plans to redevelop as a scheme of 100 beds.
The company spent £3.5m on the office buildings, which were bought from private UK clients of Burston Cook and Williams Gunter Hardwick respectively.
Jonathan Brecknell, owner of Urban Creation, said the company wanted to buy sites to accommodate a further 250 beds within the next six months.
He said: “Bristol is an extremely popular place to study and both of the city universities have expanded over the past few years, underpinning the strong student accommodation market. There is also buyer demand – we have sold three properties at yields of between 6.5% and 7% over the past few months.”
Earlier this month the developer, advised by Knight Frank, sold 58-bed Stonebridge House in the city centre to a -private South African investor for £5.5m – a 6.5% yield.
