Henderson Park and Hines have agreed to a new partnership to pursue value-added investments in the European student accommodation sector.

As part of the new joint venture, the companies expect to develop a 630-bed development in Lancaster in the UK. The new facility is currently under construction with completion in time for the 2019-20 academic year.

It is the second joint venture that Henderson Park and Hines have formed, following their acquisition of the Ledra Marriott hotel in central Athens in June.

Nick Weber, the founding partner of Henderson Park, said: “This landmark development in Lancaster represents Henderson’s Park’s first entry into the student living market and the first for this new joint venture with Hines.

“Lancaster is one of the UK’s top universities and has a large and growing population of domestic and international students but an acute under supply of modern purpose built student accommodation, which this investment will help address.

“We now look forward to working with Hines to source further interesting opportunities for future investment in this sector across a range of different European cities, where we believe there are also compelling underlying fundamentals.”

Lars Huber, CEO of Hines Europe, said: “We are very committed to the student housing sector, and look forward to expanding our growing portfolio in other markets across Europe through this joint venture with Henderson Park.

“We will be identifying locations with a vibrant and dynamic student populations, working closely with Universities to help meet the increasing demand for high quality, well-managed accommodation.”