Bank of Scotland Corporate is backing Abstract Land's Colmore Plaza development in the centre of Birmingham to the tune of £69 million.
Abstract Land yesterday said the agreement unequivocally secures the future of the landmark scheme, which is due to be completed in late 2007.
Colmore Plaza is in Birmingham's prime office core and will feature 307,000 sq ft of high specification office space for the city.
Abstract Land has been set up as a 50:50 joint venture between Abstract Securities and James Howarth and specialises in regional city centre schemes.
Heading the company are Mark Glatman, founder and chief executive of Abstract Securities - a specialist in commercial property development and venture capital financing - and James Howarth, former Birmingham property agent and director of Frontier Estates.
Contractor Bowmer and Kirkland will take the Colmore Plaza project through to completion. It began extensive preparation works in April, which includes the ongoing demolition of the former Post & Mail office tower.
Work will start on the new building's foundations next month and will be undertaken in tandem with the completion of the demolition works.
Lillian Butters, director of corporate banking at Bank of Scotland Corporate, part of HBOS, said: "Abstract Land (Birmingham) has already generated a fast track delivery programme which will ensure that Colmore Plaza will provide much needed Grade A office space to address the pronounced gap in the Birmingham market for high quality accommodation.
"The level of commitment of management, who have injected a significant amount of equity, is indicative of the quality of the scheme and
reflects our confidence in the future success of this building." The £150 million project will comprise 14 storeys, each with open, flexible floorplates of 23,000 sq ft with the capability to be subdivided for up to four occupiers.
The building will also provide much sought after secure on-site car parking for 117 vehicles.
Mr Glatman added: "Our agreement with Bank of Scotland Corporate is a significant milestone for this scheme and the level of support and enthusiasm we have been given is a true indication that Colmore Plaza is the right product to take forward the city's renaissance.
"Colmore Plaza is set to play an important role in creating opportunities for businesses to flourish in the city and to help stimulate further inward investment.
"Bank of Scotland Corporate's funding announcement underlines the key message that Colmore Plaza has quickly turned from vision to reality." In addition to the office development, Abstract says that Colmore Plaza will comprise an extended public facility.
This will link the building to the wider area, creating an "integrated and significantly enhanced working environment for the local population and future occupiers".
Knight Frank and Grenville, Smith & Duncan are joint letting agents.