Earlier this month the US bank invested £75m in a stake in modular homes manufacturer TopHat

Goldman Sachs has made a second foray into the UK housing sector in as many weeks after backing Birmingham’s tallest residential tower.

The US investment bank has agreed a £118m loan facility with private equity firm Apache Capital, which is developing the tower on Broad Street, featuring 481 private rented flats, in a joint venture with its long-time build-to-rent partner Moda Living.

Planning was granted for the 42-storey skyscraper in December 2017.

Earlier this month Goldman Sachs invested £75m in modular homes manufacturer TopHat.

Apache Capital is backing Moda Living with a number of other build-to-rent schemes including Angel Gardens, a 34-storey tower in Manchester, the 515-flat Soyo development in Leeds and the Lexington, a 35-storey tower in Liverpool.

The London-based private equity firm sold a 458-bed purpose-built student accommodation scheme in central London to a joint venture between Greystar, PSP Investments and Allianz Real Estate for over £160m.

It said funds from the disposal would be reinvested into the build-to-rent pipeline with Moda Living.

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.”