Aviva Capital Partners and Moda secure €232m for BTR project

Aviva Capital Partners and Moda Group have secured a deal with Homes England, NatWest, and the West Midlands Combined Authority (WMCA) for the £200 mln+ (€232 mln) Stone Yard project.

Digbeth

The agreement, which includes debt financing from NatWest and Homes England's Home Building Fund, will facilitate the construction of 605 high-quality rental homes in the first phase in Digbeth, Birmingham.
A brownfield grant from the WMCA will increase affordable housing to 20% at discounted market rates, integrated throughout the community. A future phase will add three more blocks, bringing the total to 995 homes.
This project aligns with the Homes England Strategic Place Partnership with the WMCA, focusing on housing growth and regeneration in the East Birmingham & North Solihull corridor.
Homes England has supplied £40 mln (€46 mln) in debt funding to the Stone Yard financing package.
Stone Yard will prioritize social and environmental sustainability, targeting top certifications including Fitwel, Home Quality Mark, and BREAAM, and offer residents amenities such as co-working spaces, gyms, and lounges.
Community-focused features like commercial units and public spaces will contribute to Digbeth's emergence as a vibrant neighbourhood.
The development will be operated by Moda and built by sister company Caddick Construction, with phase one expected to be completed in 2028. The project, located on a brownfield site near key transportation links and the city's creative quarter, aims to create a sustainable community with a focus on affordability and local needs.
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.”
Tony Brooks, executive chairman of Moda Group, commented: “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, CIO at Homes England, added: “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.”