Morgan Sindall is a partner with the council in a local asset backed vehicle to steer an ambitious £500m plan to transform the seaside town.

The agreements mean The Bournemouth Development Company LABV can begin redeveloping two council-owned surface car parks at Leyton Mount and Madeira Road.

A loan from the Homes and Community Agency will help to finance of a five-storey block of 64 apartments at Leyton Mount together with a café or restaurant.

The partnership has also got pension backing to build three blocks of student accommodation on part of the nearby Madeira Road car park.

The block (above) will house 378 students for the Arts University Bournemouth and provide room for a 382 space multi-storey public car park.

Richard Dixon, director at MSIL said “That the LABV has achieved such a milestone, within a relatively short timescale and in the context of a challenging environment for developers, is testament to the strength of the LABV model and the commitment of its partners.

“It represents an exemplar for other local authorities and public sector bodies, who are considering ways of unlocking value in surplus assets in order to help drive regeneration and improve their estates.”