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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Increasingly cloudy with drizzly rain tonight. A cloudy start on Monday but brightening up with plenty of sunny spells in the afternoon.
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Cloudy with patchy rain and drizzle this evening. Mild tonight, then dry with plenty of sunny spells tomorrow.