Caddick Construction has started work on the 拢200m Stone Yard project in Digbeth, thanks to backing from Homes England, the government development agency.
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 apartments 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.
A future development phase will deliver a further three blocks, bringing the total number of homes at Stone Yard to 995.
The developer is Moda Group with Aviva Capital Partners.
Last year, Homes England signed a strategic place partnership (SPP) with the WMCA, setting out 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 拢40m to the Stone Yard financing package.
Alongside new homes, the scheme will include commercial units and landscaped public areas. The buildings and new public realm will be operated by Caddick鈥檚 sister company Moda.
Completion of phase one is expected in 2028.
Homes England chief investment officer Marcus Railing said: 鈥淎s the government鈥檚 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.
鈥淪tone 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.
鈥淭his 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.
Moda Group executive chairman Tony Brooks said: 鈥淭his 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.
鈥淎ligned, 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.鈥�
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