Community Trust South will invest $20 million in the Invercargill Inner City Development.
After the Government announced a $19.5 million Provincial Growth Fund loan for the project on Sunday, CTS deputy chair Lindsay Wright said the development was important for the region.
The rejuvenation of Invercargill's inner-city was key to achieve the goals from Southland Regional Development Strategy to bring 10,000 extra people to the region, he said.
“A revitalised city is fundamental to ensuring we can attract and retain people in the region and will help leverage other development including new office space, accommodation and a medical centre.
“The Community Trust South funding has enabled the development to reach a critical stage in the project, which will ensure the future of our city,” he said.
CTS has undertaken extensive and robust due diligence to ensure that it can support the community through this investment and maintain its ability to provide future grant funding support, Mr Wright said.
With the Government's boost, HWCP - the company behind the project - was waiting for the confirmation of all funding to go ahead with the next step of the project, the demolition.
The Richardson Group, businessman Geoff Thomson and the Invercargill City Council have agreed to invest up to $25million each.
This was the last part of funding necessary to guarantee the project.
The project comprises the demolition of an entire block to rebuild a retail precinct with more than 40 businesses, a medical centre, office spaces and a food outlet inspired by the "Little High'' in Christchurch.
