Allianz Global Investors and the University Partnerships Programme (UPP) are providing £155m (€178m) of debt and equity for the construction of university accommodation in the UK.

Allianz Global Investors is providing £127.6m of financing in the form of 40-year, index-linked bonds to help build 1,750 student rooms on-campus at the University of Hull.

UPP and the university are providing £27.4m of subordinated debt and equity.

The project, which involves the builidng of 1,462 single rooms and one-bedroom apartments, is being carried out by Vinci.

Adrian Jones, director of infrastructure debt at Allianz Global Investors, said: “We continue to see strong demand from our clients to invest in infrastructure assets that as well as offering them the long-term, stable cash flows they need also support regional economic competitiveness, providing an attractive investment opportunity as well as supporting our quality of life.”

Allianz Global Investors and UPP have now invested roughly £300m together in UK university accommodation. In December 2014, the two organisations refinanced a project at the University of Exeter.

The deal takes UPP’s university partners to 15 and its portfolio under management or in construction to more than 32,000 student bedrooms.

UPP will also take over the operation of the existing 288 rooms at the University of Hull’s Taylor Court.