Work will start this month on a major student accommodation development in Birmingham's Gun Quarter after the derelict site was acquired for £4.2 million.

Prosperity Capital Partners, a London-based private equity firm specialising in real estate, has teamed up with developer London & UK Property to buy the site in Cliveland Street which will house 520 student bedrooms.

The Post reported last year that developers were eyeing the site next to the Birmingham and Fazeley Canal - the latest in a long line of student accommodation developments in the city's Gun Quarter (more stories below).

The £45 million project will see the demolition of a series of disused factory buildings known collectively as the former Globe Works.

The buildings date back to the mid-1900s but are set to make way for a new development of five to ten storeys containing shared flats, en suite studios and "twodios" with two bedrooms.

Another CGI of how the project will look shows the view over the canal
Another CGI of how the project will look shows the view over the canal

There will also be a lounge, games area, study centre, reception, offices, cycle storage for 60 bikes and other amenities.

The scheme, which has been designed by London-based architecture practice firm TP Bennett, is a short walk from Aston University and Birmingham City University and will be privately run.

Gavin Barry, chief executive of Prosperity Capital Partners, said: "Birmingham has a thriving higher education sector with almost 60,000 full-time students but student accommodation is an under-supplied market here, with a clear need for better quality facilities as well as more bed spaces generally.

"This is a well-designed, well-located scheme and we're in the strong position of being able to take forward these plans immediately now the site acquisition is complete.

"Construction will start this month and the scheme will be delivered for the 2018/19 academic year."

Mike Stares, chief executive of London & UK Property, added: "This site has the advantage of offering purpose-built student accommodation with the modern spaces, communal areas and amenities that students need all in one place, as well as the attraction of a canalside location that is close to university campuses and the rest of the city centre."