Goldman Sachs has issued its first UK build-to-rent (BTR) development loan, agreeing to provide £118m (€136.4m) to help fund the construction of a housing scheme in Birmingham.

The US multinational investment bank is backing the £184m Broad Street project being delivered by Apache Capital Partners and Moda Living.

Planning was granted for the 42-storey tower at 212-223 Broad Street in December 2017. The 481-home project will feature around 31,000sqft of amenity space.

In 2015, Apache Capital and Moda formed a UK private-rented sector partnership. Together, Apache Capital and Moda have one of the UK’s largest BTR pipelines with 6,500 apartments across nine cities in England and Scotland.

Last year, Apache Capital also formed a joint venture with Harrison Street Real Estate Capital and National Farmers Union Mutual Insurance Society (NFU Mutual) to fund the development of build-to-rent schemes across England and Scotland.

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.”

“Our platform with Harrison Street and NFU Mutual has shown that there is significant institutional interest in residential property and in spite of Brexit, demand for defensive, long-term income streams continues to thrive.”

Johnny Caddick, managing director at Moda Living, said: “To have Goldman Sachs provide bank debt alongside our institutional investors Harrison Street and the NFU helps underline our objective of providing a best-in-class rental product across the UK.

“We are excited to get started on our tallest scheme to date and the funding is a massive vote of confidence for quality build-to-rent in Birmingham.”

Chris Semones of the merchant banking division of Goldman Sachs said: “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.”

Semones said this transaction brings Goldman Sachs’ total European credit investing over the past three years to $1.4bn (€1.24bn) through our real estate debt funds, Broad Street Real Estate Credit Partners.”