University Partnerships Programme (UPP) has agreed a 10-year extension of its partnership with the University of Nottingham, in a deal worth £115 million.

The deal will see the student accommodation provider refurbish an extra 850 student rooms. It was financed by a consortium of Barclays, RBS and the Bank of Scotland.

Sean O'Shea, UPP's chief executive, said that the deal "demonstrates the confidence the financial community has in UPP’s unique model and student accommodation as an investment class."

UPP established a 35-year partnership with the University in June 2003, under which it would refurbish and manage existing accommodation, and provide new rooms.

That scheme will now run until 2047-8, when the assets will revert to the university.