Canadian-based Liberty Living has acquired a £460 million (US$572 million) portfolio of properties from Blackstone becoming the second largest provider of student accommodation in the UK.

The acquisition namely involves the Union State portfolio, a group of properties comprising 13 student halls in cities such as Manchester, Birmingham and Sheffield.

With assets comprising 25,000 beds, the company now only lags rival Unite in the student accommodation market, which has grown rapidly.

The transaction was financed by Liberty’s owner the Canada Pension Plan Investment Board, which buought the firm in March 2015.

According to property agency Cushman & Wakefield, the number of purpose-built student bed spaces increased 5.4pc in 2016 compared to the previous year, hitting 568,000. There is particular demand in regional cities, where yields on investments are often better.