Landmark Investment Deal Unlocks 1,000-Home Rental Community in Digbeth, Birmingham

Strategic Insights -

The UK government has announced a groundbreaking investment deal between Homes England, Aviva Capital Partners, Moda Group, NatWest, and the West Midlands Combined Authority to develop a 1,000-home rental community in Digbeth, Birmingham. The £200m Stone Yard project showcases the potential for regeneration through collaboration between the private and public sectors, driving the delivery of high-quality new homes.

The funding package includes debt financing from NatWest and Homes England via the Home Building Fund, supporting the delivery of phase one of the build-to-rent (BTR) community, which will comprise 605 high-quality homes across four blocks. The West Midlands Combined Authority has also provided brownfield grant funding, enabling the project to increase its affordable housing provision to 20%, offered at a Discounted Market Rent. A future development phase will deliver a further three blocks, bringing the total number of homes at Stone Yard to 995.

The development will champion social and environmental sustainability, targeting top-level certification from leading accreditors. The new homes will be complemented by amenity spaces, including co-working areas, 24/7 gyms, and community-focused features such as commercial units and landscaped public areas. Moda will operate the development with its signature focus on service, technology, and health and wellbeing, ensuring a professionally managed, diverse community in the heart of Birmingham.

Key Takeaways:

  • The investment deal between Homes England, Aviva Capital Partners, Moda Group, NatWest, and the West Midlands Combined Authority will unlock a 1,000-home rental community in Digbeth, Birmingham.
  • The £200m Stone Yard project will be delivered in phases, with the first phase comprising 605 high-quality homes across four blocks.
  • The development will have a 20% affordable housing provision, offered at a Discounted Market Rent through brownfield grant funding from the West Midlands Combined Authority.
  • The funding package includes debt financing from NatWest and Homes England via the Home Building Fund.
  • The development will champion social and environmental sustainability, targeting top-level certification from leading accreditors.
  • Moda will operate the development with its signature focus on service, technology, and health and wellbeing.
  • The project is part of the East Birmingham & North Solihull corridor, anchored by Digbeth in the city centre.
  • Homes England has supplied debt funding of around £40m to the Stone Yard financing package.
  • The development will feature amenity spaces, including co-working areas, 24/7 gyms, and community-focused features such as commercial units and landscaped public areas.
  • The buildings and new public realm will be operated by Moda, ensuring the curation of a professionally managed, diverse community in the heart of Birmingham.
  • Caddick Construction, Moda's sister company, will build the neighbourhood and has commenced initial work on site.
  • Completion of phase one is expected in 2028.

Statistics:

  • £200m: The total investment deal for the Stone Yard project.
  • £40m: The debt funding supplied by Homes England to the Stone Yard financing package.
  • 605: The number of high-quality homes across four blocks in the first phase of the development.
  • 20%: The affordable housing provision at Stone Yard, offered at a Discounted Market Rent.
  • 995: The total number of homes at Stone Yard, including the future development phase.
  • 2028: The expected completion date for phase one of the development.

Sources:

  • "Homes England signs Strategic Place Partnership with WMCA" (£20m article from 2023)
  • "NatWest delivers BTR funding for West Midlands development" (article from February 2023)
  • "Moda Group announces new build-to-rent development in Birmingham" (article from 2022)
  • "West Midlands Combined Authority invests in brownfield grant funding" (document from 2022)
  • "Stone Yard project press release" (Homes England press release, 2023)