ASK Developments has raised £20.5m for the second phase of its key city centre regeneration scheme, Central Spine.

Work on the first phase, around the former BT Grand Island building, has begun, and the deal with Bank of Scotland Corporate will be used to buy land and build a multi-storey car park. Plans for the site include construction of a landmark tower to form a gateway entrance to the heart of the city.

The site will also include 19 new buildings, 12 office/mixed, three hotels and two car parks.

Bank of Scotland Corporate's funding package will be used to fund the acquisition of 5.5 acres around Grand Island and a second plot designated for two multi-storey car parks. A portion will fund the construction of the site's first multi-storey car park.

Stephen Cliff of Ask Developments, said: "Central Spine will become a favourite destination for Mancunians and visitors alike."

Paul Devenport of Bank of Scotland, said: "We saw this as an excellent opportunity."