Grainger will provide developer Nikal with finance to enable construction of a private rental scheme of 373 apartments. It will then take over ownership of the building on completion, which is expected in 2022.
The scheme will form part of a new urban village at Exchange Square, opposite the planned Birmingham HS2 Curzon Street Station.
The deal is conditional on planning consent.
Nikal managing director Nick Payne said: "We are delighted to be working with Grainger on the final phase of Exchange Square. The announcement is made after months of careful design to create an exemplary PRS development. We hope work will begin in mid 2019."
Grainger chief executive Helen Gordon said: "We are delighted to announce today's acquisition at Exchange Square in Birmingham for £77m, which will deliver 373 homes for rent in a great central location in one of our top target cities. Birmingham has exciting growth plans and we are pleased to be part of it. Once Exchange Square is complete, Grainger will have 529 purpose-built PRS homes in Birmingham worth £105m, including our other PRS development scheme, Gilders Yard in the Jewellery Quarter."
Birmingham City Council corporate director Waheed Nazir said: "The skyline in Birmingham City Centre is changing rapidly and investment and confidence is at an all-time high. The desire for people to live in the city forms part of our exciting future. This investment by Grainger is testimony to the global positioning of Birmingham.”
Below is time-lapse footage showing construction up to November 2018 on the first phase of Nikal's new urban village in Birmingham, located opposite Birmingham Curzon HS2.