More than 300 jobs are to be created through a £5 million hotel and affordable homes development in Brighton's city centre.
A Government grant will be used to build the complex on derelict land behind the city's main railway station.
Coast To Capital has £23 million of Government funding and expects to announce further loans to public and private sector organisations.
Its chief executive, Ron Crank, said: "Our aim is to remove blockages that are preventing development and private sector employment. This is one of Coast To Capital's major strategies."
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Dry and sunny with long spells of sunshine in the south east and feeling hot
Fine and dry with some good long sunny spells, especially this afternoon and early evening and feeling very warm
Saturday morning's weather for the east of the region