To kickstart the new venture, the promoters have bought two existing schemes in Nottingham and Lincoln from Riverside Developments, for more than £20 million ($35 million). The Nottingham scheme is a newly completed development of 378 rooms, centrally located opposite the Law School of Nottingham Trent University. And the Lincoln development, completed two years ago, provides 294 bedspaces in the city centre.

Alan Tripp, Insight's Fund Manager for Clerical Medical, said: "Student accommodation is a fast growing sector. The Government's objective is to attract 50% of 18 year olds to university by 2010. There is already a shortage of quality student accommodation, and demand will increase over the next few years for a professionally managed service. We consider this residential sub-sector to be beneficial to our aim of increasing Clerical Medical's exposure to a broad range of residential assets."