TV dragon James Caan has struck one of Canterbury’s biggest property deals after overseeing the £46 million purchase of a student village in the city.

The mega-rich entrepreneur, chairman of London-based firm 90 North Real Estate, secured the privately-owned 800-bedroom complex in Parham Road for Kuwaiti backers Dimah Capital.

The deal was signed and sealed after months of talks with developers Pavilion Property Group, which included an overnight visit to Canterbury from the Gulf investors.

The site already has 16 buildings, but it is expected 600 more student bedrooms will be provided in the surrounding area as part of the purchase.

A source close to the deal said it was one of the biggest Canterbury had ever seen and claimed the accommodation could relieve the pressure on housing stock.

Philip Churchill, founder partner of 90 North, said: “Canterbury is a long-established centre for education and we are delighted to work with Pavilion Property Group to provide quality student housing and build value for our clients.

"What attracted us was Canterbury’s long tradition as a centre of educational excellence, which has resulted in a number of quality universities in the city.

"90 North is looking at opportunities to further improve the impressive accommodation and facilities at the student village, working with our university tenants to determine their wishes.

“This may include future development phases, but for the moment we are delighted to have made a significant investment into the Canterbury student accommodation market.”

Developers are expected to use planning permission already in place for 633 student bedrooms on land at Ling Metals and Shillings Yard.

Ling Metals boss Robin Ling confirmed he has a new site in Hersden and is waiting to move.

City council leader John Gilbey said he was “staggered” at the level of investment in the city.

But he refused to be drawn on whether he supported the plans to increase student accommodation in Parham Road.

He said: “We will have to enter those discussions as we always do when they come before us.”