U of T plans to lease a part of the school’s land to a private developer to construct a student residence worth $120-million.

Knightstone Capital Management Inc., a Toronto-based company, plans to erect the building east of Spadina Avenue on College Street.

“Knightstone is a well-known and well-respected developer of institutional buildings. They approached U of T with a proposal to build a residence, partly on U of T-owned land,” said U of T spokesperson Laurie Stephens.

“U of T reviewed the proposal and gained approval from the Governing Council to lease the land to Knightstone to build a privately owned and operated residence.”

If the City of Toronto approves the building, Knightstone wants to start construction as early as this spring.

The 40-storey building is expected to help alleviate the lack of housing on campus, especially for international and graduate students.

Stephens said that living in a privately-owned building will not be much different from living in one fully owned by U of T.

“There are currently some 10 privately owned and operated residences in the surrounding neighbourhoods. There may be no difference whatsoever,” she said.

“The developer has indicated an interest in providing the standards for residences and services equal to those of the university. Where any of the private residences do not live up to our standards, U of T does not recommend that residence to students.”

The cost of living in the condo-style residence, Stephens said, will be “in line with other public and private housing facilities in the downtown Toronto area.”

The Globe and Mail reported that students will pay an amount close to that of Chestnut Residence, about $10,000 for a single room per school year.

Knightstone will receive payment from students and pay the university some amount in rent. U of T could not reveal the amount it will receive in rent payments as it is “a commercial agreement.”

On its website, Knightstone boasts about its ability to fill the housing void in universities by providing students with “an amenity-rich student living experience consisting of advanced technology, private baths, and resort-style facilities and services.”

International student Hiwot Telaye, who studies nutritional science and economics, moved into a downtown apartment after she wasn’t able to find accommodation in one of U of T’s residence buildings.

But when it comes to housing, Telaye said sophisticated “resort-style” living is not a priority.

“International students don’t come here for luxury; they’re here for the education,” she said.

“Considering how pricey tuition is already for international students, the least we’d expect is to have an affordable accommodation.”

Telaye, who pays about $9,000 a year for her apartment, wants to move out for the next school year to find a cheaper option.

“I don’t want to move further away from campus, but it’s just very expensive,” she said.

Trent University has also been looking at private dwelling options on campus, but students voted against the proposal in a referendum in 2008.

A group called No Private Residence at Trent Coalition, made up of students and university staff, went as far as running a banner ad on city buses that read, “Don’t let Trent sell out our campus to commercial interests.”

The Knightstone residence will also house students from other universities.