The University of the Highlands and Islands has struck a £44million deal to build hundreds of new student flats across the north.
Work on the first phase of the massive project will start in Inverness and Fort William within days.
It will cost £10million and create 190 student beds.
The second phase of the scheme will cost £34million and provide accommodation for up to 470 students at UHI’s sites across the region by September 2017.
Last night, the deal agreed between university chiefs and specialist developer Cityheart was hailed as “fantastic news” and the fulfilment of a “long held vision”.
The new flats in the Highland capital will be built in two blocks housing 150 students on the vacant “plot seven” of the Inverness Campus site, close to the Inverness College UHI building
The Fort William block will be build at An Aird off Camanachd Crescent, and will house 40 students from the West Highland College UHI campus.
The two projects are expected to generate up to 90 construction jobs over the next year, and up to six permanent posts once the buildings are complete.
UHI and Cityheart are currently scoping for the second phase of the project, which will involve new flats being built to serve campuses in Dornoch, Stornoway, Lerwick, Thurso, Perth and Elgin.
Further student accommodation is also being considered for Inverness.
UHI principal and vice-chancellor Professor Clive Mulholland said: “This is fantastic news for our current and future students across the Highlands and islands area.
“Cityheart has a great track record of developing and managing student residences across the UK and we are pleased to have them working with us on the first of a number of projects across our region.
“Our students are at the heart of everything we do and we are measured by their success.
“The provision of suitable accommodation is important in delivering a university with more satisfied and higher attaining students.”
Chester-based Cityheart will build and then manage the student flats.
It has recently worked on similar projects for Edinburgh’s Napier University and Glasgow School of Art.
Cityheart managing director, Mark McNamee, said: “To be working with a new university, and to help it achieve its goals and objectives through adding superb accommodation and facilities for their students, is exciting beyond words.
“We look forward to providing a seamless service to the university and the colleges and research institutions which make up its partnership over the coming years.”
Councillor Thomas MacLennan, who represents Fort William and Ardnamurchan, said the flats would “formalise” a student quarter for the town.
He said: “This is really good news for Fort William. It will give us flats for students which is handy for the university building, the town centre and all the transport links like the bus and railway stations.
“At present the students are scattered all over the place so it will formalise a proper student quarter which can only be a good thing.”
Inverness Campus sits within Councillor Thomas Prag’s ward and he said the flats were part of a “long held vision”.
He said: “It’s absolutely great, there is a fantastic environment there already and it will be so much better with people actually living there.”
A spokesman for campus developer Highlands and Islands Enterprise said: “We’re delighted to see work get under way on this development.
“This is the fourth plot on the campus now under development.”