Homes England, Aviva Capital Partners, Moda Group, NatWest, and
the West Midlands Combined Authority, have completed a landmark
investment deal to unlock a 1,000-home rental community in
Digbeth, Birmingham.
The funding agreement for the £200m Stone Yard project in Digbeth
showcases the strength of opportunity 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. This will support the
delivery of phase one of the build-to-rent (BTR) community, which
will comprise 605 high-quality homes across four blocks.
In addition, the West Midlands Combined Authority (WMCA) has
provided brownfield grant funding, enabling the project to
increase its affordable housing provision to 20%, which will be
offered at a Discounted Market Rent. This provision will be
dispersed throughout the development, enabling community led
regeneration whilst delivering the highest quality of place and
accommodation.
A future development phase will deliver a further three blocks,
bringing the total number of homes at Stone Yard to 995.
Last year, Homes England signed a Strategic Place Partnership
(SPP) with the WMCA, setting out shared ambitions to advance
locally-led housing growth and regeneration in key locations in
the region, including the East Birmingham & North Solihull
corridior which is 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 champion social and environmental
sustainability, targeting top level certification from leading
accreditors including Fitwel, Home Quality Mark and BREAAM.
The new homes will be complemented by a range of amenity spaces
for all residents, including co-working spaces, 24/7 gyms and
studio spaces, lounges and private dining rooms.
Alongside new homes, the scheme will include community-focused
features such as commercial units, landscaped public areas, and
links to local attractions will contribute to Digbeth's emergence
as a vibrant, inclusive neighbourhood.
The buildings and new public realm will be operated by Moda with
its signature focus on service, technology and health and
wellbeing, 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.
Located on a prominent four-acre brownfield site, Stone Yard is
in a highly accessible location on Deritend Road. The site sits
at the heart of the city's creative quarter, adjacent to the
Custard Factory and directly opposite the new Eastside Metro
extension and the forthcoming HS2 Curzon Street Station.
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.
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, 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.
Notes to editors:
-
The strengthened relationship between Homes England and the
Combined Authority follows the publication of the
government's English Devolution
White Paper in December 2024, which details the plan to
empower local leaders and deepen devolution across England.
-
The white paper highlights Homes England's work on SPPs and
the important part they play in devolution.
