£300m BTR funding deal secured for Jewellery Quarter scheme

An American private equity firm is set to finance a £302m BTR development on Great Charles Street, Birmingham. It’s the biggest UK BTR funding deal made outside London.

Harrison Street, a Chicago-firm which has around £55bn in assets under management, will join together with UK investment manager Apache Capital and NFU Mutual to fund Moda Living’s 722-home BTR scheme in the Jewellery Quarter.

The JV, which was formed in 2018 to fund premium BTR developments across the UK, now includes six assets, representing a total of 3,050 homes.

In addition to Great Charles Street, current projects include Moda sites in Birmingham, Edinburgh, Liverpool, Leeds, and Glasgow.

Moda Living will develop, manage and operate the £302m Great Charles Street, which is set to begin phased delivery in October 2025 and will prioritise leading ESG certifications. Once complete, it will offer studios to three-bedroom apartments with views across the Jewellery Quarter.

Residents will also benefit from a rooftop terrace and BBQ areas, gym with personal training and classes, bicycle storage, washing and repair station, residents’ lounges, private dining, cinema room, meeting rooms and co-working space and secure parking, as well as a 24-hour concierge and onsite security.

New public realm and green spaces at ground level will provide new walking and pedestrian routes, as well as retail and leisure units, at the former brownfield site, which has been undeveloped for more than 50 years.

Paul Bashir, chief executive officer of Harrison Street’s European business, said: “The Birmingham market is backed by strong demographics, with the greatest concentration of businesses outside of London and home to home to many leading universities our continued efforts to invest in premium BTR assets in leading markets across Europe.”

John Dunkerley, CEO at Apache Capital, said: “Today’s announcement – the largest regional build-to-rent funding deal to date – underlines our conviction in build-to-rent as a major institutional asset class.

“It also demonstrates the enduring appeal of our highly amenitised, highly serviced model, which has been proven by the success of our first Birmingham asset, The Mercian.

“In Harrison Street, NFU Mutual and Moda Living, we have a set of experienced partners that have helped us build a market-leading platform and we are pleased to have expanded it with this transaction.”

Johnny Caddick, CEO at Moda Living, said, “This is a huge moment for Moda Living, securing what is the market’s largest ever regional deal for a BTR asset.

“It’s testament to the teamwork of our team and partners Harrison Street, NFU Mutual and Apache Capital that have worked tirelessly to overcome multiple headwinds and get this over the line.

“Birmingham is a key city for Moda and another scheme with all the fundamentals that create an incredible place for residents to live”.

Ian Ward, Leader, Birmingham City Council, said: “This is a hugely exciting project, breathing life and community back into a key central site which has been unused for more than 50 years.

“Moda’s development at Great Charles Street will deliver much-needed new homes to Birmingham and will be central to the ongoing transformation of the city centre”.

Tom Bostock, property investment manager at NFU Mutual, whose headquarters are in Warwickshire, said: “High quality, purpose-built rental accommodation such as our Great Charles Street development provides long term steady income streams while helping major cities like Birmingham attract and retain talent.

“The regeneration of the site is underpinned by an intense focus on ESG that is in line with our corporate vision, illustrated through the socio-economic benefits for the local community and a wide range of carbon cutting measures at the construction and operational phase.”

The deal was advised by Knight Frank.

Click here to sign up to receive our new South West business news...