M&G Investments will be forward funding the first phase of Ashall Projects Centre Square project in Middlesbrough, by providing over £22m for the acquisition of a long leasehold interest in the site and the development itself.

The land around Centre Square East will be transformed into circa 210,000 sq ft of Grade A office accommodation, enhanced public realm and landscaping with additional food and beverage outlets.

Mark Ashall, Director of Ashall Projects said: “This significant investment is a huge boost of confidence for the town and for the scheme which will play a significant role in the continued transformation of Middlesbrough.

“This development will also benefit from being at the heart of the local public transport network and within easy access of the town’s leading educational institutions Teesside University and Middlesbrough College.”

Ashall has agreed a deal with contractors Bowmer & Kirkland to lead the construction of the development and the start of construction on-site.

Middlesbrough Mayor Dave Budd, said: “The high-quality Centre Square office development is a key part of the major city-scale regeneration happening in Middlesbrough. The backing of M&G is further proof if ever it were needed that there is an ever-growing confidence in Middlesbrough.”

Upon practical completion of the scheme, a 35-year lease will be initiated with Middlesbrough Council, who will have the option to re-acquire the site at the end of the term.