TORONTO - CHC Student Housing Corp.is joining forces with the Dundee financial group to create a bigger public company that would manage up to 4,700 residential beds in 13 markets from Fredericton to Windsor, Ont.

CHC is exected to be renamed Canadian Student Living Group, led by CHC chief executive Mark Hansen and his management team.

CHC and Dundee see student housing as an attractive asset class that's underdeveloped in Canada.

They say only three per cent of post-secondary students in Canada live in purpose-built housing -- compared with 12 per cent in the United States and 23 per cent in the United Kingdom.

CHC will be combined with Dundee Acquisition Ltd. -- a publicly traded affiliate of Dundee Corp. (TSX:DC.A) -- which will provide financial resources and business connections.

Dundee Acquisition has concurrently reached agreements with other parties to acquire additional housing properties and create a portfolio with total value of up to $420 million -- including eight properties currently owned or managed by CHC.