Aviva Capital Partners (ACP), Aviva’s capital unit investing in real estate and infrastructure projects, has formed a joint venture with Moda Living, a developer and operator of rental communities in the UK.
The partnership will invest in a four-acre regeneration site in Digbeth, Birmingham, for 1,000 build-to-rent (BTR) apartments with a gross development value (GDV) of £400m.
The site was purchased from vendors Gallagher Developments Ltd and Court Collaboration.
Aviva said the proposed scheme in Digbeth would support the regeneration of this central part of Birmingham, providing purpose built, high quality, sustainable housing. The brownfield site, to be called “Stone Yard”, is only a short walk from Birmingham New Street train station and will be close to both the forthcoming HS2 station and where the BBC is making its new Midlands base, The Tea Factory.
The homes will be delivered and operated for the long term by Moda Living which focuses on best-in-class design and energy efficient smart buildings. The new homes will be complemented by a range of high-quality resident amenities and green spaces, including roof terraces and landscaped public areas.
”The joint venture with Moda, which will look to assess further large scale regeneration opportunities around the UK, marks Aviva Capital Partners’ first move into the build-to-rent sector and its latest investment in UK housing,” the company said.
This follows on from the partnership with property developer Stories in March and a £20m investment in modular housebuilder TopHat in April.
John Cummins, CEO, Aviva Capital Partners, said: “Birmingham is a fantastic city which we are delighted to be investing in. New, high-quality accommodation is vital for Birmingham to continue to thrive and meet its undoubted potential. Aviva and Moda are developing approximately 1,000 high quality homes right in the centre of the city which will boost the local economy and support the UK’s ambition to develop attractive and environmentally-friendly living spaces in our cities.”
Tony Brooks, Managing Director at Moda Living, said: “At Moda we pride ourselves on creating thriving communities where people can live their healthiest, most sustainable lives and this landmark deal with Aviva allows us to deliver this at meaningful scale. Partnerships like this are an important part of the solution to the UK’s current housing crisis, facilitating major brownfield regeneration into thousands of new, sustainable homes.
“Stone Yard promises to feature not only our unparalleled resident experience and excellent customer service, but also social value initiatives and investment in skills and training that will benefit the local community for many generations to come. Stone Yard is at the heart of the Digbeth regeneration area and as our first scheme in this area of the city, we are very excited to bring it forwards in the coming months and years.”
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