Shepherd Construction will build a new 33-storey student tower in Manchester after the city council granted planning permission.
Student Castle is the developer behind the 520-bed development on Great Marlborough Street, in the city centre.
The construction cost of the 109m-high tower is around £45m.
The rooms will be a mix of self-contained studio apartments and cluster-style communal accommodation.
Edward Cade, chief executive of Student Castle, said: “We are delighted to have been awarded planning permission for this landmark scheme in Manchester.
“As a new, expert developer within the sector we are pleased to have this opportunity to make a positive contribution to the regional economy and higher education sector in one of the UK’s most vibrant cities.”
The tower is due for completion in 2012.