Investment management firm Harrison Street has expanded its BTR joint venture with Apache Capital and NFU Mutual to fund Moda Living’s £302m (GDV) Great Charles Street development in Birmingham, in what is believed to be the largest regional BTR funding deal completed in the UK.
Moda will develop, manage and operate the 722-home development, which is set to begin phased delivery in October 2025.
The city centre scheme on a former brownfield site will offer residents a wide range of amenities, including a rooftop terrace and BBQ areas, a gym with personal training and classes, bicycle storage, washing and repair station, residents’ lounges, private dining, cinema room, meeting rooms and co-working space.
Paul Bashir, chief executive officer of Harrison Street’s European business, said: “We’re thrilled to expand our partnership with Apache, a leading investor in the premium UK build-to-rent space and Moda, a leading developer in the UK and pioneer in the build-to-rent sector, to bring this development to Birmingham. The Birmingham market is backed by strong demographics, with the greatest concentration of businesses outside of London and home to many leading universities. This transaction underscores our continued efforts to invest in premium BTR assets in leading markets across Europe.”
John Dunkerley, CEO at Apache Capital, added: “Today’s announcement – the largest regional build-to-rent funding deal to date – underlines our conviction in build-to-rent as a major institutional asset class. It also demonstrates the enduring appeal of our highly amenitised, highly serviced model, which has been proven by the success of our first Birmingham asset, The Mercian. In Harrison Street, NFU Mutual and Moda Living, we have a set of experienced partners that have helped us build a market-leading platform and we are pleased to have expanded it with this transaction.
Johnny Caddick, CEO at Moda Living, said, “This is a huge moment for Moda Living, securing what is the market’s largest ever regional deal for a BTR asset. It’s testament to the teamwork of our team and partners Harrison Street, NFU Mutual and Apache Capital, which have worked tirelessly to overcome multiple headwinds and get this over the line. Birmingham is a key city for Moda and another scheme with all the fundamentals that create an incredible place for residents to live. We look forward to working with Harrison Street, Apache, Birmingham City Council and other key stakeholders to get this fantastic project out the ground.”
Will Jordan, partner at Knight Frank, said: “This is a landmark deal for the UK’s BTR market. As the biggest agreement ever signed outside of London, Moda, Harrison Street, NFU Mutual and Apache have blazed a trail in what is a huge show of confidence for a market that continues to go from strength to strength despite challenging economic headwinds.”
Tom Bostock, property investment manager at NFU Mutual, added: “We are pleased to expand our build-to-rent joint venture with Apache Capital and Harrison Street. High quality, purpose-built rental accommodation such as our Great Charles Street development provides long term steady income streams while helping major cities like Birmingham attract and retain talent. The regeneration of the site is underpinned by an intense focus on ESG that is in line with our corporate vision, illustrated through the socio-economic benefits for the local community and a wide range of carbon cutting measures at the construction and operational phase.”
