DIF Capital Partners said it has reached a financial close on a student-accommodation public-private-partnership (PPP) project with the London School of Economics and Political Science (LSE).

The DIF Infrastructure V fund will own 80.1% of the project and the university will retain 19.9%.

The project is to build student accommodation facilities comprising 676 beds, communal spaces, a gym, three roof terraces, a cinema room and two courtyard gardens.

Long-dated funding has been provided by UK specialist insurer Pension Insurance Corporation, and design, build, operations and maintenance of the asset is to be completed by Equans subsidiary Engie Regeneration.

Gijs Voskuyl, partner and head of investments for DIF’s latest funds, says: “DIF is excited to be growing its portfolio in the student accommodation sector.

“We look forward to partnering with a world-class university and to support it with its student accommodation delivery.”

Yesterday, the University of Birmingham announced it had entered a partnership with another infrastructure fund manager, Equitix, to build student accommodation, also financed by Pension Insurance Corporation.