Capital & Centric has signed a £1.1m gap funding agreement with the European Regional Development Fund for phase one of the redevelopment of the former Littlewoods Pools complex in Liverpool.
The money will be matched with £1.1m from Capital & Centric's Business Premises Renovation Allowance fund.
Phase one includes an access road, site infrastructure and the £4m conversion of a derelict warehouse known as the 'Bunker building' into 17,500 sq ft of office space.
Capital & Centric acquired the building in April from the Homes & Communities Agency and received planning consent earlier this year.
The company also sought interest from contractors for part demolition and strip-out works last month. The tender process is set to be formalised, with work starting on site in October.
The scheme forms the first phase of a wider £20m plan to convert the iconic Littlewoods Pools building into a 104-bed hotel, 50,000 sq ft of business units and 50,000 sq ft of offices.
Plans were approved for the Littlewoods Pools Building under a separate planning application in March 2013.
Louise Pearson, development surveyor at Capital & Centric, said: "This site holds strong social interest in the local community and we're delighted to have secured the support of the European Regional Development Fund to bring the building back to life to assist economic growth and job creation."