A former industrial site used by IMI and which covered 3.5 acres has been sold for £1.7 million to free school operator the Tauheedul Free School Trust.
BCU's decision to sell the land in Wellhead Lane follows a number of previous developments in an estates strategy which has already seen a major investment in the city's Eastside area including the Parkside Building which opened last year.
BCU's director of estates Graham Rhodes said: "The sale of this industrial land represents not just a good deal for the university but also an excellent development for the Perry Barr community.
"It means a disused site will now be developed in a way that will benefit generations of young people and their families.
"We look forward to the school taking its place in the community and thank GVA for its instrumental role in making this deal happen so successfully."
Property consultancy GVA acted for BCU on the sale.
Carl Potter, senior director and head of offices, added: "It is important for BCU that it ensures the very best development of its land, selling to developers or individuals who will make a contribution to the wider area, something this deal achieves extremely well.
"With strong transport links and located so close to the city centre, Perry Barr is well suited to support this kind of redevelopment."
Law firm Mills & Reeve also acted for BCU on the land sale which was conditional upon Tauheedul Free School Trust first obtaining planning permission for the development of the site.