Stockport Council in the UK has approved plans to borrow £18.5m to fund phase two of the £140m Stockport Exchange development.
The council acquired the site, formerly known as Grand Central, in 2011 and appointed Muse Developments to deliver the project.
Phase one of the project, which includes highway improvements and a new 1,000 space multi-storey car park, is currently underway.
The second phase will feature a 120-bed hotel, 50,000ft² of offices and public realm facilities.
Muse Developments senior development surveyor Wes Erlam said the next phase of development will create a gateway into the town, resulting in new facilities for both the public and business community.
"We’re now looking forward to putting together the planning application with a view to starting on site next year," Erlam said.
Stockport Council borrowed £15m in 2011 to fund phase one of the development, which is expected to be completed by early 2014.
The third phase of the project will include the development of additional office facilities.
The council is accessing the finance for the scheme through prudential borrowing, a loan system with preferential rates that can be utilised by local authorities to invest in fixed assets.
The council said the loan will be used to forward fund the office and hotel developments.
Stockport Council executive member for economic development and regeneration Iain Roberts said the redevelopment of Stockport Exchange is crucial to the success of the town centre and the borough.
"The income generated will cover the cost of the loan and the wider benefits to the borough will be enormous. This scheme will create jobs for local people and vastly improve the town centre for residents, workers, commuters and visitors," Roberts said.
Image: Grand Central Stockport. Photo: Courtesy of Muse Developments.