The University of Canberra has sold 15 hectares of land to a developer to build 1600 units and townhouses as part of its campus master plan.
Peet Limited will acquire the land for about $66 million with the option to purchase a further 6.2 hectares from the university from 2027.
University of Canberra vice-chancellor Paddy Nixon said the development would expand the Belconnen town centre and create a community living on the campus.
"We want families living on campus," he said.
"We want to be able to build up the infrastructure here on campus that supports our students, so shops and bars and cafes, etc, but we need all year round engagement with those to make them viable."
The land to be developed is bounded by University of Canberra Hospital in the north and University Park in the south, a corridor of green space which runs between the John Knight Memorial Park and the centre of the campus.
Peet will also fund a professor and PhD students and will support work-integrated learning in the field of the built environment, including architecture, construction and landscaping.
"I think that's a wonderful way of saying it's not just about selling land, it's about building partners for the long term," Professor Nixon said.
Peet managing director and chief executive Brendan Gore said more than 1600 residences could be built on the land through a mix of townhouses and apartments.
A further 1000 dwellings could be built if they take up the option to acquire more land.
"The property will provide Peet with a long-term presence in the Belconnen Town Centre growth corridor of Canberra," Mr Gore said.
Mr Gore said in the announcement to the Australian Stock Exchange that if both parcels of land are developed, it would have a gross sale value of more than $2.3 billion.
The development will have sustainability initiatives, including solar passive design, solar street lighting and infrastructure, rainwater harvesting and electric vehicle charging stations.
The land transfer will take effect in November 2023.
Professor Nixon said the university was unlikely to sell any further parts of its 140 hectare site and would instead enter into long-term leases.
The university is working on a business case for its Sports Hub 2, which will have a 3500-seat indoor stadium.
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