A specialist build-to-rent developer and operator has agreed a partnership deal which will commence with a new regeneration project in Birmingham.
Moda Living has teamed up with US investment firm KKR on what it is calling an “amenity light” rental offer which will be cheaper than Moda’s other schemes in the UK.
The long-term aim is to deliver 5,000 new homes, starting with 398 units at the New Garden Square project, in Edgbaston.
Moda Living is close to completing its first project in Birmingham, the 42-storey Mercian tower in Broad Street containing 481 apartments, and in late 2019 secured consent for the 722-apartment Great Charles Square, to be built on Ludgate Hill Car Park in the Jewellery Quarter and reaching 39 storeys.
These projects and others by Moda in cities such as Manchester, Leeds and Edinburgh have been characterised by a plethora of facilities for residents such as cinema rooms, a running track, rooftop football pitches and communal areas aimed at encouraging interaction and a sense of community among residents.
This new partnership with KKR will aim to deliver 5,000 units over the next three to five years but will instead focus on low-to-mid rise buildings away from core city centre areas, have fewer amenities and cheaper rents. Their first will be at the New Garden Square development.
Landowner Calthorpe Estates first unveiled a £300 million masterplan in 2016 for 10.7 acres of land between Hagley Road and Duchess Road which could eventually comprise apartments, 500,000 sq ft of grade A offices, a 100-bed hotel, retail, bars, restaurants and public realm.
The firm teamed up with Birmingham developer Court Collaboration in late 2019 on the residential element of New Garden Square by lodging £90 million plans.
Moda Living and KKR will now work alongside Court Collaboration to develop 398 apartments, having acquired the two-acre site from Calthorpe Estates.
Moda’s managing director Tony Brooks said: “We are thrilled to be launching a new living platform with KKR who shares our vision of creating and running state-of-the-art rental communities to cater to all demographics.
“They are a fantastic global strategic partner and, with our joint ambition and complementary skill sets, we are in a strong position to roll out our strategy across the UK.”
Rosa Brand, director of KKR which is listed on the New York Stock Exchange, added: “Build-to-rent residential remains a priority sector for us in Europe and we are very excited to create a unique, best-in-class portfolio with our strategic partners Moda Living.”
Alex Neale, managing director of Court Collaboration, said: “New Garden Square is a truly exciting scheme for our city and we’re delighted to see the development progressing with Moda Living.
“Both companies have so much love for Birmingham – a city well and truly on the up and we are thrilled Moda and KKR have bought into our ambition here.”