UK: A JV between Harrison Street, NFU Mutual and Apache Capital has agreed a £302 million forward funding deal for Moda Living’s Great Charles Street BTR scheme in Birmingham.
A US investment management firm has agreed a funding deal for a £302 million build-to-rent development in Birmingham which will provide more than 720 homes.
The JV, which was formed in 2018 to fund premium BTR developments across the UK, now includes six assets, representing a total of 3,050 homes. In addition to Great Charles Street – which will feature more than 720 homes, current projects include Moda, The Mercian, also in Birmingham; Moda, The McEwan in Edinburgh; Moda, The Lexington in Liverpool; Moda, New York Square in Leeds; and Moda, Holland Park in Glasgow.
Paul Bashir, chief executive 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, chief executive 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.”
Moda will develop, manage and operate Great Charles Street, which is set to begin phased construction in October 2025. Once completed, it will offer 722 homes for rent, ranging from studios to three-bedroom apartments.
Johnny Caddick, chief executive at Moda Living, said: “It’s testament to the teamwork of our team and partners Harrison Street, NFU Mutual and Apache Capital that 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.”
