Galliard Homes has launched a £500m Birmingham housing programme in partnership with Apsley House Capital.
The joint venture is planning to build 2,800 homes to create “London-like regeneration projects” across the city.
Its first development in the pipeline is the 0.6 ha Timber Yard scheme, plans for which comprise two buildings of seven and 13 storeys in height.
In total, 379 apartments will be built as well as gym space and a cinema room.
Four other residential projects are set to follow the Timber Yard development and provide a total of 2,800 homes.
Galliard and Apsley said they were pushing into the Birmingham market to capitalise on major infrastructure upgrades such as HS2 and the £200m expansion of Birmingham International Airport.
Galliard and Apsley join a number of developers looking to expand in the region.
In June, Berkeley chairman Tony Pidgley said the housebuilder was “cautious” about investment in London and was “growing the business in Birmingham” through its new brand St Joseph in the company’s full-year results.
In reference to the capital, Mr Pidgley said: “It is telling that some funders and builders are choosing to exit the market when faced with the degree of risk and regulation that now confronts development in the capital, where macro and political uncertainty – including Brexit – are leading to this caution.”
According to a Construction Products Association and Barbour ABI survey published last month, investment in new homes in the capital has dropped to its lowest level since 2012.
The value of contracts awarded in 2017 were more than a third lower (34 per cent) than the previous year in London, with demand for new homes increasingly coming from cities such as Birmingham, Manchester and Sheffield as they undergo city centre regeneration projects.