A development site in Birmingham earmarked for a £400 million apartment project has been acquired.
A joint venture between property developer and manager Moda Living and finance group Aviva Capital Partners has bought The Stone Yard in Digbeth in an undisclosed deal.
The four-acre site sits at the corner of High Street Deritend and Alcester Street and was once home to the Bull Ring Trading Estate and a Peugeot showroom.
It received consent in 2020 for 995 apartments along with amenities for residents, roof terraces and landscaped public areas and 30,000 sq ft of commercial space.
It will be built across seven blocks reaching 30 storeys and will be in close proximity to the new tram line, HS2 station in Curzon Street and the new BBC Midlands canalside studios at Typhoo Wharf. The new homes will be available to rent only and will be managed by Moda Living.
The sellers were Warwick-based Gallagher Developments and Birmingham-based investor and developer Court Collaboration which is leading the redevelopment of the former Irish Centre on land next door to create a 48-storey apartment block.
It is the latest project in Birmingham by Harrogate-based Moda Living which opened the 42-storey Mercian tower in Broad Street last year.
Construction work recently started on its new 722-apartment, 39-storey scheme in Ludgate Hill and last month it revealed plans for the next phases of New Garden Square, in Hagley Road.
Managing director Tony Brooks said: "We pride ourselves on creating thriving communities where people can live their healthiest, most sustainable lives and this landmark deal with Aviva allows us to deliver this at a meaningful scale.
"Partnerships like this are an important part of the solution to the UK's current housing crisis, facilitating major brownfield regeneration into thousands of new, sustainable homes.
"Stone Yard is at the heart of the Digbeth regeneration area and, as our first scheme in this area of the city, we are very excited to bring it forwards in the coming months and years."
Aviva Capital Partners is the real estate and infrastructure investment arm of financial services giant Aviva and this deal marks the firm's first move into the build-to-rent sector.
It said the new JV with Moda Living would look to invest in other large-scale regeneration opportunities around the UK.
Chief executive John Cummins added: "Birmingham is a fantastic city which we are delighted to be investing in. New, high-quality accommodation is vital for Birmingham to continue to thrive and meet its undoubted potential.
"Aviva and Moda are developing approximately 1,000 high-quality homes right in the centre of the city which will boost the local economy and support the UK's ambition to develop attractive and environmentally friendly living spaces in our cities."
Gallagher Developments owner Sir Tony Gallagher said: "Stone Yard is great news for inward private investment into Birmingham and it will be the first big private sector development coming forward in the Digbeth area."
Court Collaboration chief executive Anthony McCourt added: "We're incredibly proud of securing planning for Stone Yard back in 2020, a truly game-changing scheme. It's going to be first out of the blocks in Digbeth as the area really begins to flourish following the metro extension.
"We look forward to seeing it progress in Moda's very capable hands and, as always, proud of what our joint venture with Sir Tony Gallagher is delivering for our great Second City."
