UK: Aviva, Moda, and public sector partners agree £200m+ deal to deliver 1,000-home BTR community in Birmingham
Aviva’s in-house capital unit Aviva Capital Partners and property company Moda Group have secured a major funding deal with NatWest, Homes England and the West Midlands Combined Authority [WMCA] to deliver a new 1,000-home build-to-rent community in Digbeth, Birmingham.
The project, known as Stone Yard, will be built on a four-acre brownfield site on Deritend Road, close to the Custard Factory and the forthcoming HS2 Curzon Street Station. Phase one will deliver 605 rental homes across four blocks, while a future phase will bring the total to 995 homes.
Debt financing for the scheme includes support from NatWest and Homes England via the Home Building Fund. The WMCA is contributing brownfield grant funding, which has helped increase affordable housing provision to 20 per cent at Discounted Market Rent levels.
Caddick Construction has started initial works, with phase one expected to complete in 2028.
The development will include co-working areas, gyms, lounges and dining rooms, as well as commercial units and landscaped public areas. Moda will operate the site with a focus on tech-enabled living, service, and wellbeing. The buildings will target certifications from Fitwel, Home Quality Mark and BREAAM.
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, 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. 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, said: “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.”
Highlights:
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Aviva and Moda secure £200m+ funding to deliver a 1,000-home BTR community in Digbeth, Birmingham
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Phase one will deliver 605 homes, with 20% offered at Discounted Market Rent
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Partners include NatWest, Homes England and the West Midlands Combined Authority
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The development will target top sustainability accreditations and offer extensive resident amenities
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Completion of phase one expected in 2028
