Aviva Capital Partners and Moda Group have secured a deal with NatWest, Homes England and the West Midlands Combined Authority (WMCA) to deliver a new £200m-plus build-to-rent (BTR) community in Digbeth, Birmingham.
The funding will support the first phase of the Stone Yard project, which will deliver 605 rental homes across four blocks.
Future phases will bring the total to 995 homes.
Debt finance comes from NatWest and Homes England, with the latter providing around £40m.
The WMCA has given brownfield grant funding, which means 20% of the homes will be affordable and offered at Discounted Market Rent.
The scheme will have commercial units, public areas and links to local attractions.
Moda will manage the buildings, which will include amenity spaces like co-working areas, gyms, lounges and dining rooms.
Caddick Construction has started on site, with completion of phase one due in 2028.
The development is on a four-acre brownfield site on Deritend Road, in Birmingham’s creative quarter near the Custard Factory and the planned HS2 Curzon Street Station.
The scheme aims for strong sustainability standards and accreditations from Fitwel, Home Quality Mark and Building Research Establishment Environmental Assessment Method (BREEAM).
Sophie White, regeneration sector lead at Aviva Capital Partners, said: “We’re delighted to be working with Moda to provide high quality accommodation in Birmingham, helping to support the local economy and beyond.
“The partnership with NatWest, Homes England and WMCA has been critical in getting the scheme underway for this key brownfield site in Digbeth.
“Sustainability is at the heart of this development, with community and affordability critical elements helping to ensure it supports the local area to get ready for the future.”
Tony Brooks, executive chairman of Moda Group, said: “This milestone is a powerful demonstration of what can be achieved when the public and private sectors work collaboratively to realise a shared, long-term vision for regeneration.
“Aligned, we will be able to deliver much-needed new rental homes, at pace.
“With high quality new public realm completing the neighbourhood, Stone Yard will be a pivotal part of the wider regeneration of Digbeth, transforming a brownfield site into a thriving urban community.”
Michael Goode, director and BTR lead at NatWest, said: “Stone Yard is an exciting project for Birmingham.
“The delivery of much needed new homes, with enviable sustainability credentials, is aligned to NatWest’s ambitions in BTR.
“It was a pleasure working with Aviva Capital Partners and Moda, alongside our funding partners at Homes England and WMCA, in delivering an innovative financing solution.”
Marcus Railing, chief investment officer at Homes England, said: “As the government’s housing and regeneration agency, our aim is to support public and private sector partners to unlock strategic housing sites, and we are committed to supporting stakeholders of all sizes to achieve their ambitions.
“Stone Yard is a prime example of how the Agency works collaboratively with both public and private partners to achieve our mission to build much needed new communities that people can be proud to call home.
“This funding agreement also represents how Homes England works with Mayoral Strategic Authorities by aligning investment, unlocking opportunity and delivering at scale through Strategic Place Partnerships.”
