A funding deal has been agreed with Goldman Sachs to support the construction of a new 42-storey residential tower in Birmingham.

Development team Apache Capital Partners and Moda Living have signed a £118 million deal for their project called 2one2 Broad Street on the site of the old Tramps nightclub.

When complete, it will have 481 apartments to rent, a 200-metre running track on a third-storey podium, commercial space, co-working areas and communal lounges and kitchens.

This new funding deal is Goldman Sachs' first UK build-to-rent development loan.

Contractor John Sisk was recently recruited to lead its construction.

 

Richard Jackson, managing director and co-founder at Apache Capital, said: "We're delighted to partner with Goldman Sachs for their first UK multifamily deal.

"Birmingham has incredible long-term investment potential with considerable investment underpinning new infrastructure and employment.

"The city council have a lot to be proud of and its support of build-to-rent will pay huge dividends as Birmingham looks to further expand its skilled workforce and retain great talent."

Chris Semones, from Goldman Sachs' merchant banking division, added: "We are delighted to be backing Apache Capital in Birmingham.

"This transaction continues our originate-to-hold strategy for large loans against high quality projects with excellent sponsorship, strong market fundamentals and resilient cash flows."