In response to increasing demand for student accommodation in Wellington, Victoria University has announced that a new hall of residence will be opening in 2017.

Located at 143 Willis Street, the hall reconfigures the current Tel Tower building. The layout of which, according to Jenny Bentley—Victoria’s Director of Campus Services, is “not ideal for office use in the digital age, which requires more open spaces.”

The hall will be fully catered and will have over 300 beds, bringing the number of beds offered by Victoria to approximately 3300 across twelve halls of residence.

Victoria University Vice-Chancellor Professor Grant Guilford says the new hall of residence will benefit Wellington, citing the expenditures of students and their visitors as a large part of the university’s $1 billion annual contribution to the regional economy.

Guilford adds that students also contribute “through part time jobs, internships, and their involvement with the creative industries.”

The announcement of the new hall comes after a shortage of beds earlier this year resulted in students at Katharine Jermyn Hall and Weir House having to share single rooms.