Aviva Capital Partners and Moda Group have completed a funding deal with NatWest, Homes England and the West Midlands Combined Authority (WMCA) to unlock a 995-home build-to-rent (BTR) scheme in Digbeth, Birmingham.
The funding agreement for the £200m+ Stone Yard project includes debt financing from NatWest and Homes England via the Home Building Fund, which will support the delivery of phase one of the BTR community, which will comprise 605 homes across four blocks.
The WMCA has provided brownfield grant funding to enable the project to increase its affordable housing provision to 20%, which will be offered at a discounted market rent.
A future development phase will deliver a further three blocks, bringing the total number of homes at the four-acre brownfield site to 995.
The new homes will be complemented by a range of amenities for residents, including co-working spaces, 24/7 gyms and studio spaces, lounges and private dining rooms.
The buildings and new public realm will be operated by Moda and Caddick Construction, Moda’s sister company, will build the neighbourhood. Completion of phase one is expected in 2028.
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, added: “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, added: “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.”
