DETROIT — Wayne State University officials have approved an agreement transferring management of on-campus housing to a private company in exchange for hundreds of millions of dollars for construction, renovation and debt payoff.

The Detroit university’s governing board agreed to the deal Friday with Corvias Campus Living. Officials say the 40-year agreement is worth $1.4 billion.

An initial investment of $300 million will be used to build, demolish and renovate apartment buildings, as well as pay off housing-related debt. The projects, scheduled to be completed by 2021, are expected to create about 800 more beds.

Wayne State will own the buildings and land. East Greenwich, Rhode Island-based Corvias will handle maintenance and management.

The school has had to place students in a hotel and temporary quarters because housing demand has outstripped supply.