Moda Living, the UK developer, operator and owner of private, build-to-rent (BTR) homes, and joint venture partner Apache Capital Partners, have submitted a planning application to deliver a 722-home build-to-rent development in Birmingham.
The scheme, dubbed Great Charles Street, has a gross development value of £258 mln (€288 mln) and will involve the transformation of a 2.6-acre (10,500 m2) brownfield site into a new neighbourhood with homes, shops, amenities and improved public realm.
If planning is successful, this will be Moda and Apache Capital’s second site under development in the city after ‘The Mercian’ on Broad Street, which is Birmingham’s tallest residential tower under construction.
The construction of the Mercian has been funded by a £118 mln debt facility secured by Apache Capital from Goldman Sachs, the US investment bank’s first ever UK BTR development loan.
Moda and Apache Capital’s total investment of £445 mln is set to deliver 1,200 homes in Birmingham, accounting for some 24% of the councils target of 5,000 new homes per year in the city.
Richard Jackson, co-founder and managing director of Apache Capital Partners, said: 'As a long-term investor and operator we are committed to delivering and expanding our build-to-rent pipeline with Moda Living. Despite the wider disruption caused by Covid-19, the sector remains highly attractive thanks to its defensive qualities and strong fundamentals, with a clear mismatch between demand and supply.'
Tony Brooks, managing director at Moda, commented: 'While times are tough for everyone at this time, we believe Birmingham’s future beyond this is bright and accordingly we have submitted our plans for the Great Charles Street development - our second site in a city we love.
'The site, currently a car park, will be an exciting new neighbourhood in the prosperity of the city. The local authority has been fantastic in helping to guide us on our journey and we look forward to continuing to invest in the city when the present situation improves.'
The development duo said it had consulted with a number of stakeholders on the scheme, including Birmingham City Council, the Jewellery Quarter Development Trust, the Jewellery Quarter Business Improvement District, Colmore Business Improvement District, the Birmingham Civic Society, local councillors, local businesses and members of the public. Moda also held a two-day public exhibition towards the end of February which was attended by over 175 individuals.
Moda and Apache Capital together now have £850 mln of live schemes under construction across the UK, representing the first phase of its £2.5bn pipeline of over 7,500 rent-only homes.
According to the JV, it has the largest privately funded build-to-rent platform in the UK, with invest partners including from major UK and US institutional investors such as Harrison Street and NFU Mutual.