Clarence Arcade in Ashton-under-Lyne, Tameside, has received £1m from the European Regional Development Fund towards redevelopment into a business centre, with the grant matched by developer Jersey Street Properties, part of Northern Group.
Tameside Council supported Jersey Street Properties, which owns the building, in the bid for ERDF funding. The plans include converting the 20,700 sq ft vacant retail arcade into offices with high speed broadband, meeting rooms and conference facilities. The scheme will also incorporate a glass atrium as a communal space for users.
Clarence Arcade was built in 1894 and was Tameside's only covered Victorian shopping arcade.
Cllr Kieran Quinn, executive leader of Tameside Council said: "This amount of investment and external funding is fantastic news for the borough, as well as helping to restore an attractive and historic building it will bring opportunities for enterprise and employment."
Jake Ezair, managing director of Jersey Street Properties, said: "We see huge potential in Ashton and our substantial investment in transforming this beautiful building in to a state-of-the-art business centre is a testament to our confidence."
Work on the development will start in July, with the new businesses centre due to open in spring 2015. Capra Architects is the architect on the scheme.