AFTER a two-year wait, a second multi-million pound university campus for the city has moved a step closer to reality with the University of Worcester finally securing the derelict former Worcester Royal Infirmary site in Castle Street.

University and business chiefs have hailed the news, which will mean a dramatic boost to Worcester's economy and regeneration for run-down parts of the city.

The Chamber of Commerce Herefordshire and Worcestershire said there will be dramatic financial benefits for the city as a result of the £5.5 million purchase from Advantage West Midlands.

Chris Harvey, head of policy and representation at the Chamber of Commerce, said: "We are absolutely delighted by the news in terms of both the investment that it brings in and extra people who will be coming in and spending money.

"It will also have an impact on the regeneration in that part of Worcester and, of course, lots of other knock-on effects for local businesses such as hotels and restaurants that will benefit from the extra people."

As the Worcester News revealed in March, ambitious £120 million plans for the five-acre site include a learning and cultural quarter with a centrepiece city square for students, residents andvisitors, a 400-seat multi-use performance and conference centre and public galleries.

Two glass atriums will provide outstanding views on to the listed former hospital buildings and city square and people will have full access to book and art shops, a restaurant, and cafes.

There will also be homes for 400 students, and a wellbeing centre complete with small indoor running track, therapy and treatment rooms.

The new campus will focus on creative arts and business and will help the university grow from 8,000 to 12,000 students, secure more than 1,250 new jobs, and bring an estimated £60 million a year into the region's economy by 2012.

It will link to the planned £55 million university and public library and history centre - a joint project with the county and city councils - through a covered walkway beneath Worcester's railway viaduct.

Wayne Langford, partnerships manager at Advantage West Midlands, said: "We are delighted to have provided a crucial site for this exciting regeneration project, which is set to give a huge economic boost to the city and the wider region.

"We look forward to working with the university in the future to bring these plans and the wider vision for this part of Worcester to fruition."

John Yelland, University of Worcester chairman of governors, said: "Thanks to tremendous help and backing from Advantage West Midlands throughout this project, we have secured a major strategic city centre site, which will undoubtedly bring a wealth of enduring education and economic benefits to the region."

The Worcester News reported on Thursday how the University of Worcester is now 55th in The Guardian's annual university guide, rising 37 places this year. The university, which achieved full university status in 2005, is now rated above a host of longer established universities including Swansea, Ulster, Brighton, Nottingham Trent, Aberystwyth, Coventry, Gloucestershire and UWE Bristol.

Plans for the university were handed into the planning department of Worcester City Council in April.

The first phase of building is scheduled to be finished by 2009 and the target is to finish the university itself by 2012.