The regional development agency, Advantage West Midlands, has pledged £30m of funding which, it is hoped, will generate more than £300m in private investment.

Contracts have been finalised in partnership with RegenCo, the urban regeneration company for West Bromwich, Smethwick and Hill Top, to purchase Sandwell College’s high street campus, which will act as a catalyst for further regeneration.

Advantage West Midlands will lease the site back to the college until the New Sandwell College in Spon Lane is complete in 2010/11.

Work is due to start on the £80m state of the art college this year, replacing the current facilities in Smethwick, Oldbury and West Bromwich.