Aviva Capital Partners and Moda Group 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 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 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 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.
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.
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.
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."
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.”
Ends
Enquiries:
Aviva Capital Partners
Joe Booth +44 (0)7800 698 836
Claire Jermany Grange +44 (0)7385 148681
Moda Living
Emma Shone +44 (0)7538 555 332
About Aviva Capital Partners
- Aviva Capital Partners (ACP) is Aviva’s in-house capital unit that invests Aviva’s capital to open up new opportunities for UK growth: helping develop thriving, sustainable communities, while generating long-term returns for our customers.
- ACP invests in urban regeneration projects, housing projects and sustainable infrastructure projects. It invests in the early stages of projects, creating optionality for ongoing investment by the wider Aviva business. ACP investments exemplify Aviva’s sustainability ambition, creating impact across the UK.
- For more details on ACP, visit Aviva Capital Partners.
About Moda Group
- Moda Group is a leading developer, investor and operator in the UK rental living sector, working with global institutional capital across the BTR, PBSA and single-family markets to provide exceptional living experiences.
- With £2bn of assets under management and a further £1.1bn of homes under construction, Moda Group provides a full range of integrated services to source, deliver and operate market-leading homes across the UK with a focus on service, design, technology and sustainability.
Notes to editors:
- We are the UK's leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
- We help our 20.5 million (as at 31 December 2024) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we'll be there to put it right.
- We have been taking care of people for more than 325 years, in line with our purpose of being 'with you today, for a better tomorrow'. In 2024, we paid £29.3 billion in claims and benefits to our customers.
- In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence over our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global system. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at www.aviva.com/sustainability/climate and our sustainability ambition and action at www.aviva.com/sustainability.
- Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
- As at 31 December 2024, total Group assets under management at Aviva Group were £407 billion and our estimated Solvency II shareholder capital surplus as at 31 March 2025 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
- For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
- The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
- You can follow us on:
- X: www.x.com/avivaplc
- LinkedIn: www.linkedin.com/company/aviva-plc
- Instagram: www.instagram.com/avivaplc
- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
