Investment set to unlock a 1,000-home rental community in Digbeth

Moda Group and Aviva Capital Partners have completed a landmark investment deal with NatWest, Homes England, and the West Midlands Combined Authority (WMCA) to unlock a 1,000-home rental community in Digbeth, Birmingham.

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 £200 million Stone Yard build-to-rent (BtR) community, which will comprise 605 high-quality homes across four blocks.

In addition, the West Midlands Combined Authority 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.

A future development phase will deliver a further three blocks, bringing the total number of homes at Stone Yard to 995.

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.

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 corridor 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.