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The cash injections, part of a £443m government package over six years to increase growth in Sussex, was secured after a submission by Coast to Capital, the Local Enterprise Partnership (LEP) which is focused on delivering growth.

Treasury Minister David Gauke joined Coast to Capital chairman Tim Wates and chief executive Ron Crank to announce the deal at Gatwick Airport.

Three university-led projects will benefit:

• £7.7m will be injected into the Preston Barracks Central Research Laboratory scheme which is partnered with Brighton & Hove City Council and developers the Cathedral Group. This will create a new innovation hub to commercialise university research and to support high-growth businesses and new housing.
• £2.7m will be go to the Circus Street regeneration development, again partnered with the city council and Cathedral, comprising new university academic facilities including a library, homes, student accommodation and offices.
• £7m towards an engineering Centre of Excellence, a collaboration between the university and Shoreham-based Ricardo, world leaders in technical and environmental consultancy and specialising in the development of low carbon vehicle technology.

Professor Julian Crampton

Preston Barracks: aerial artist's impression

Preston Barracks: artist's impression

Professor Julian Crampton, University of Brighton Vice-Chancellor, said: "We are delighted by the announcement today and look forward to continue working with our partners on these exciting projects. The government’s investment through the LEP will greatly enhance our plans to deliver business growth and state-of-the-art buildings and facilities."

The Preston Barracks Central Research Laboratory will receive the first £1m of the planned £7.7 million investment in 2015-16. Professor Crampton said the university has been working closely with Brighton & Hove City Council and Cathedral to create comprehensive £150m development plans for Preston Barracks and adjacent land owned by the university.

He said: "The development incorporates a range of uses from residential accommodation and student residences, to space for a new University of Brighton Business School and innovation space to develop academic research so that the university and business can work closely together, and a Centre of Excellence for engineering research.

The Circus Street project involves regeneration of the old fruit and vegetable market close to the university’s Grand Parade campus, to deliver new homes, an office building, student flats, a library and academic buildings. The cash injection amounts to £2.7 million, with £1.5 million earmarked for 2015-16.

The Centre of Excellence engineering centre will deliver leading automotive and environmental engineering training and research. It will receive £7 million, with £4.5 million allotted for 2015-16.

Ricardo Chief Technology and Innovation Officer Professor Neville Jackson said: "Ricardo is pleased to be collaborating with the University of Brighton on the new engineering research Centre of Excellence that has been announced today. This new initiative builds upon the highly successful collaboration, of over twenty years standing, between the Ricardo and the university on next generation clean combustion technology and high fuel efficiency engine research."

The whole £443m government package is expected to create 14,000 jobs, 4,600 new homes and almost 200,000 square metres of employment space in Sussex.

Prime Minister David Cameron said: "This historic deal means real change for people and businesses."

Coast to Capital chairman Tim Wates said: "We believe this area has great potential for growth and is able to compete effectively with the most prosperous regions in Europe and indeed globally.

"This first-year investment by government shows that they too believe in our region’s potential."