Allied London is in negotiations with the European Regional Development Fund for £15m in matched loan financing to fund the speculative Cotton Building in Spinningfields, Manchester .
Allied won consent for the 10-storey, 160,000 sq ft Cotton Building, originally launched as I+, earlier this year.
The funding would be secured from the North West Fund, a £155m evergreen investment fund set up and financed by the ERDF and the European Investment Bank.
Allied London would then match the financing with its own funds.
The fund was launched in 2011 to stimulate development and investment in the North West.
CBRE Indirect Investment Services advises the fund.
