Legal & General has committed £35m to Wrenbridge Sport and the City of York Council for the development of Vangarde leisure scheme at Vangarde Way in Monks Cross, York.
The investment, made by Legal & General on behalf of its Leisure Fund, will be used to build a leisure and retail scheme at the Vangarde development.
A new 13-screen IMAX cinema, which has been leased to Cineworld, and restaurants and retail units, will be built as part of the scheme.
The project is part of the regeneration of the Vangarde development at Monks Cross on which Wrenbridge Sport, the City of York Council and Greenwich Leisure have been working for the past four years.
The scheme includes the construction of an 8,000-seat stadium for York City FC and York Knights RCFC, a leisure complex community hub comprising sports hall, 25-metre swimming pool, gym, NHS facilities and outdoor artificial pitches, as well as shops and restaurants.
The contractor, Buckingham Group, has already begun preparations to start construction on the stadium complex so that it can be opened in 2019.
Legal & General has so far invested more than £12bn in direct investments and urban regeneration projects in the UK and has committed an additional £15bn.
Wrenbridge Sport has developed stadia and sports facilities throughout the UK and delivered a number of new venues for the London 2012 Olympic & Paralympic Games. It is currently developing new schemes worth £400m.
Wrenbridge managing director Richard Arnold said: “Both Wrenbridge and our consultants have worked extensively to deliver this project for the City of York. The support of our wider team has enabled us to deliver one of the most complex projects we have ever been involved in.”
LGIM Real Assets senior fund manager Andrew Ferguson said: “Good-quality leisure developments in the UK are still relatively rare. The chance to fund a brand new scheme, anchored by Cineworld, in an important growth city such as York is a great opportunity for the Leisure Fund.”