Caddick Construction is gearing up to start full-scale building work on a near-1,000 home build-to-rent neighbourhood in the heart of Digbeth after a £200m funding deal was sealed.

The Stone Yard scheme is being delivered by Moda with investment backing from Aviva Capital Partners and debt support from NatWest and Homes England.

The West Midlands Combined Authority is also on board with grant funding to boost affordable housing levels on the four-acre brownfield site.

Caddick, Moda’s sister company, has started early works on the first phase which includes 605 homes across four blocks. Completion is targeted for 2028. A later phase will bring the total number of homes to 995.

Homes England has committed around £40m of loan funding via its Home Building Fund while WMCA support ensures 20% of the homes will be delivered at discounted market rent, dispersed across the site.

Stone Yard will also feature co-working spaces, gyms, lounges and public realm alongside commercial units, all professionally managed by Moda. The development aims for top-tier sustainability ratings including BREEAM, Fitwel and Home Quality Mark.

Located on Deritend Road next to the Custard Factory, the scheme is at the heart of Digbeth’s creative quarter and opposite the future HS2 Curzon Street Station.

Homes England said the deal was a flagship example of Strategic Place Partnerships unlocking large-scale housing and regeneration.