Camborne Land Investments has acquired a site in central Birmingham to build a 15-floor PRS tower.
The developer said the £100m Kent Street Baths scheme would provide 500 rental apartments as well as retail and leisure facilities at street level.
It will have gross internal area of 450,000 sq ft.
Work is expected to start on site next year, with construction set to take 24-36 months.
The scheme is part of CLI’s plan to build 5,000 homes for private rent over the next five years, with the firm looking to invest in London and regional cities across the UK including Cardiff, Liverpool and Sheffield.
A separate £100m PRS scheme in Birmingham city centre was given planning permission last year and will see property developer Nikal build 603 apartments.
Nikal picked Sir Robert McAlpine last November to deliver the project.
CLI land manager Daniel Cohen said: ”The private rental sector in the UK is developing rapidly and represents a significant contributor to solving the country’s housing shortage.
“CLI is focusing its investments on regional cities across the UK and the London commuter belt, and is steadily building its pipeline of opportunities.“
The government last month used the housing white paper to outline its ambition to drive more PRS construction across the UK.