Fund interest has also reassured investors in Unite about the company's net asset valuation and ability to pay down high levels of debt.

The student blocks are all subject to long-term agreements with universities, which guarantee between 80% to 90% of rents for 25 to 30 years. Unite will retain about 30% of gross rents. Mark Allen, Unite's finance director, says properties with such guaranteed income streams had proved relatively easy to sell.

The company had received a dozen offers for the student blocks, with five of the bids at or above the initial asking price. However, he says investors were still a little nervous about student properties.

Unite builds, manages and markets purpose-built blocks of student accommodation in a number of cities across the UK. Some are leased to universities while others are marketed directly to students. The four blocks sold are located in Bristol, Leeds and Newcastle, comprising a total of 1,246 beds.

Unite will use some of the sale proceeds to pay off debt. The rest will be used to fund the company's ongoing development programme, which aims to bring 5,000 new student beds on to the market each year. Shares in the company rose nearly 5 per cent to 247p, their highest level for 15 months.

"The fact that they have sold the assets to a blue chip investor like Morley gives credibility to student accommodation as an investment product," says Matthew Saperia, analyst at Abn Amro.