A major £200 million funding package to deliver nearly 1,000 rental homes in Digbeth, Birmingham, has been finalised through a public-private partnership between Aviva Capital Partners, Moda Group, NatWest, Homes England, and the West Midlands Combined Authority (WMCA).
Led by Aviva and Moda, the investment is set to transform a four-acre brownfield site near Birmingham New Street Station and the upcoming HS2 Curzon Street station into a “vibrant and sustainable neighbourhood”.
Backed by £40 million in debt from Homes England’s Home Building Fund, alongside additional support from Natwest, phase one of the project, known as Stone Yard, will deliver 605 homes.
While WMCA’s brownfield grant funding will enable 20 per cent of these to be offered as affordable housing at discounted rent.
A future development phase will bring the total number of homes at Stone Yard to 995.
The scheme will include co-working areas, gyms, and public spaces, with investor, developer, and operator, Moda managing the site and Caddick Construction leading the build.
The proposal was first put forward several years ago in 2021 when the WMCA invested more than £5 million in the brownfield land under similar plans set for completion by 2026.
In 2023, Moda Living and Aviva Capital Partners formed a joint venture to acquire the site from its original developers, Gallagher Developments and Court Collaboration, who had secured planning approval for the build-to-rent units.
Phase one of the project is now slated for completion in 2028.
Tony Brooks, executive chairman at 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.”
Sophie White, regeneration sector lead at Aviva Capital Partners, added: “We’re delighted to be working with Moda […] The partnership with NatWest, Homes England and WMCA has been critical in getting the scheme underway for this key brownfield site in Digbeth.”
The public-private partnership reflects growing momentum for urban regeneration in Birmingham and aligns with the Homes England-WMCA strategic place partnership signed last year.
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