Urbanest has agreed a £125m financing deal with M&G Investments to build a 650-bed block of accommodation for students from King's College London.

The Aldgate development will also provide 60,000 square feet of Grade-A office accommodation, with developers working with the Museum of London to incorporate archaeological remains into the project.

The £125m loan will mature in 2023 and will convert from a development to investment finance facility once construction is complete.

Vicky Skinner, chief financial officer at Urbanest, said: "This is Urbanest's most ambitious student-led mixed-use development to date, providing a unique blend of student housing, heritage, entrepreneurial innovation, commerce and leisure space uses which will sit alongside and complement each other in the completed scheme."

Adam Willis, associate director in M&Gs real estate finance team, added: "We continue to see increasing demand for student accommodation in the capital and this deal provides our institutional investors with access to attractive returns secured against high quality real estate in London's city centre."