Capital & Centric has signed a gap funding agreement with the European Regional Development Fund to receive £2.4m to speculatively develop 40,000 sq ft of offices in Liverpool.
The £6m renovation of Churchill House, to be renamed 12 Tithebarn, will deliver affordable office pods targeted at small firms, the developer said. The ERDF grant must be matched equally by other finance sourced by the developer.
The project designed by Sixtwo Architects is due to start on site pending detailed planning consent.
Capital & Centric acquired the derelict eight-storey building and car park in April from Derwent Lodge Properties.
The project will be Capital & Centric's fourth speculative development in Liverpool in three years alongside schemes in south Liverpool near the airport and at the former Littlewoods building in Edge Lane.
Sir Howard Bernstein, deputy chairman of the North West ERDF local management committee, said: "This is a significant project which will provide a boost to the local economy, help local businesses and create jobs. I am extremely pleased that the European Regional Development Fund is supporting it financially."
Tim Heatley, co-founder of Capital & Centric, said: "Signing this agreement is the last big bit of the jigsaw that we needed in order to get cracking with construction. This innovative approach to funding, design and development means we can continue to develop speculatively, avoid having any bank debt and deliver great looking buildings."