Student accommodation provider Unite Group (LON:UTG) launched an £170 million share issue on Wednesday, in order to fund a further two university housing projects.

Around 22 million shares are set to be issued at a price determined via a book-build, representing around 9.2 percent of the company’s share capital.

The group is planning one of the new projects in partnership with Oxford Brookes University, with planning in place to build a £73 million residence for 887 students.

The second project is a 1,000-bed development for Kings College London, set to cost around £195 million and open in 2021.

The company added that it hopes to increase its dividend payout ratio from 75 percent to 85 percent of earnings in the current financial year.

Unite Group shares are currently trading down 1.03 percent at 772.00 (0840GMT).