More than 500 new homes are set to be built on the edge of the Jewellery Quarter following a land deal.
Joint venture partners Galliard Homes and Apsley House Capital have acquired a four-acre site on the corner of Summer Hill Road and Icknield Street from British Airways Pension Fund.
A loan of £9.4 million was provided for the deal by UK bank OakNorth.
The complex is currently occupied by a two-storey office block and car park and is used by Birmingham and Solihull Mental Health NHS Foundation Trust.
The joint venture team said it was planning a residential scheme of more than 500 new homes at the site which will be called Camden Yard.
It expands the firms' foothold in Birmingham where it is working on residential projects at Soho Loop off Dudley Road, the AE Harris factory site in the Jewellery Quarter and Southside, where it recently received planning permission for 379 apartments in a project called Timber Yard.
Stephen Conway, executive chairman of Galliard Homes, said: "This is the fourth site we have acquired in Birmingham.
"We have around 2,000 new homes with a gross development value in excess of £500 million in the pipeline for the city and are looking forward to starting work on the first of these before the end of this year."
Apsley House Capital director Robin Norstrom added: "The site is a significant gateway into the Jewellery Quarter and our second here following our acquisition of the AE Harris site.
"We are huge fans of this historic district and our holdings will make us the biggest residential developer in the area."