Invesco's forward funding deal means that construction of the first phase, a 17-storey building, will now start before the end of 2019.
The development, called Holloway Head, is being built on a site between Blucher Street, Gough Street and Ellis Street in Birmingham that is currently a car park and a Girl Guides headquarters. It will ultimately have 484 flats for the private rented sector, according to plans.
Invesco Real Estate managing director of residential investments John German said: “Birmingham is our third major UK regional city of investment following our commitments in Liverpool and Manchester. Adding Birmingham to our growing portfolio is a great next step due to its positive market outlook, growing reputation as a business destination and positive rental growth outlook. Holloway Head marks the 12th asset in our UK Residential Fund, bringing our assets under management to around £580m and approximately 2,279 units across the UK.”