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."
More top news
Patchy rain tonight ahead of another cloudy and breezy day tomorrow. Rain and stronger winds arriving from the west tomorrow evening.
Staying cloudy with patchy rain tonight. Rain and stronger winds arriving from the west tomorrow evening.
Cloudy and breezy with rain arriving from the west later.