Plans for accommodation at Fort William and Inverness will begin next week.
The £44m deal will be carried out in two phases.
Work is due to start on a 40 bed residence in Fort William near West College UHI and a 150 bed facility near Inverness College UHI on the new Inverness Campus.
Both projects, valued at £10m, are to be completed in time for the start of the 2016 academic year.
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The second £34m phase will see Cityheart seek additional suitable development sites through the university's area with a view to provide a further 470 student beds by September 2017.
Principal and Vice-Chancellor of UHI, Professor Clive Mulholland, said: "This is fantastic news for our current and future students across the Highlands and Islands area.
"Cityheart has a great track record of developing and managing student residences across the UK and we are pleased to have them working with us on the first of a number of projects across our region."
Cityheart's Managing Director, Mark McNamee, said: "We look forward to providing a seamless service to the university and the colleges and research institutions which make up its partnership over the coming years."
(LM/CD)
