Work has started on a bringing a historic former factor in Digbeth back to life as a £30 million mixed-use complex.

Colmore Tang Construction is creating a residential-led scheme in the former Harrison Drape curtain factory, in Bradford Street.

The two-acre development, which is owned by its sister company, the property investor Seven Capital, will comprise 73 studios, 152 one-bedroom and 88 two-bedroom flats as well as a 2,420 sq ft retail unit, parking and landscaping.

It has created work for 200 staff and 30 sub-contractors and is due to be finished by the end of 2016, benefiting from its close proximity to Bullring, Moor Street Station and the planned High Speed 2 terminal in Curzon Street.

Construction director Andy Conroy said: "We are really excited to be starting work on the Harrison Drape project, a key milestone in the regeneration of the Digbeth area.

"The old curtain factory has a great legacy with the local community and we wanted to make sure we maintained as much of the original features as possible to preserve its heritage.

"As a result, we are retaining the façade of the building which will be converted into 118 apartments, a combination of studio and one and two beds.

The site had been the home of curtain track maker Harrison Drape since the 19th century but was brought by developer Seven Capital in 2012 from Irish developer Naus Group which had planned to turn the site into a three- and four-star hotel with retail and office units.

Naus Group was also behind the long-mooted Connaught Square project but this collapsed in 2010 and work only recently restarted under the leadership of new owner Marlborough Property Company.

The redevelopment of Harrison Drape is the latest in a long line of projects being carried out in Birmingham by Seven Capital and Colmore Tang Construction.

The companies are transforming Auchinleck House, at Five Ways Island, into a Park Regis Hotel which is due to complete this autumn while nearby One Hagley Road is being converted into 271 apartments.

In the Jewellery Quarter, it is behind the redevelopment of the former Swan Kettles building, in Icknield Street, to create more than 500 apartments there and on neighbouring land.

It also recently finished a refurbishment of the Grade II listed 112 Colmore Row.

Wouter Schuitemaker, investment director at inward investment programme Business Birmingham, addeD: "The Harrison Drape project is the latest in a series of exciting, new residential developments, which take advantage of Birmingham's eye-catching, historic architecture.

"Not only will the scheme create more than 200 new jobs, it will cement the city's emergence as one of the UK's top property investment locations.

"From the iCentrum building at Innovation Birmingham Campus to the multi-million pound centre of excellence at Birmingham City University, more people and businesses are being attracted to the local area – and Harrison Drape will help to meet the growing demand for accommodation in the increasingly popular Digbeth district."