Following the acquisition of a 12 acre site in Birmingham, Apsley House Capital and Galliard Homes have revealed plans to build 800 homes.

The two companies have bought the Soho Loop site near City Hospital from City and Provincial Properties in a joint venture with Claremont Property Group and plan to transform it into a new canal-side community.

Robin Norstrom, director of London-based Apsley House Capital, said: "It is going to transform what is a neglected and derelict area of Birmingham into a canal-side quarter of high quality homes with character in a green pocket.

"It is an ambitious project which will deliver well-managed good quality housing. We see it as an innovative response to today’s changing needs in accommodation.

"We also believe it could assist with the retention of graduates and key workers in Birmingham whilst supporting the inward investment decisions of key employers in the region."

Birmingham City Council has already given planning consent for 500 homes, allowing for the development of six key plots, with three fronting Dudley Road. Apsley House Capital intends to submit an application for revised planning consent to create up to 800 homes. Vacant and derelict buildings will be demolished.