Finance group Legal & General is backing a residential development in the Jewellery Quarter with £53 million in funding.
The group is backing the new build and regeneration project on Newhall Square, off Newhall Street.
for the creation of 220 apartments, which will be available to rent only, 7,500 sq ft of ground floor commercial space, public areas and parking for 61 cars and 83 bikes.
The overall project will reach up to 11 storeys and contain mainly one- and two-bedroom apartments with a small number of three-bedroom townhouses while incorporating existing Grade II-listed buildings on the site.
Earlier phases of development there saw a new Staycity apart-hotel, Co-op convenience store and Travelodge hotel.
Legal & General has agreed the forward funding deal with developer Spitfire Bespoke Homes and this deal represents its latest investment in Birmingham.
In recent years, it has acquired Temple Court and Priory Court, part of which is now renovated the in Corporation Street and
Fund manager Dan Batterton said: "This development, in a highly sought after area of Birmingham, links the industrial heritage of the Jewellery Quarter with the modern business district.
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"The location is ideally suited to high-quality, affordable and professionally managed rental accommodation that can help to address the supply demand imbalance in the city.
"Given the huge infrastructure investment in Birmingham, it has been a target location for us in building a high-quality and well diversified portfolio of build-to-rent schemes.
"We expect to continue adding schemes and new locations over the coming months."
David Jervis, managing director of Spitfire Bespoke Homes, added: "We understand that renting is a now a tenure of choice for many urban dwellers and recognise they have high expectations.
"The traditional buy-to-let market is being overshadowed by the purpose-built rental sector, which is refreshingly focussed on service, high quality accommodation and resident amenities."