Developer Bluetree Estates has secured £3m from NatWest to convert the former Manchester music studio of Pete Waterman into office accommodation.
Castlefield Chapel, a former church that was built in 1852, will be converted into 11,000 sq ft of offices.
Artists in the Stock Aitken & Waterman stable recorded numerous pop hits in the chapel during the 1980s.
Bluetree bought the chapel two years ago from Pete Waterman for £1m. The building was designed by Edward Waltress, who also designed Manchester's Free Trade Hall. It was used as a non-conformist chapel for many years and has also been used as a schoolhouse and an auction room.
The conversion is due for completion in May 2009.