The development has received £38m worth of investment that will result primarily in the construction of a 15-storey 235-bed Premier Inn hotel.
A 6,000 sq ft Bar and Block steakhouse restaurant and 5,000 sq ft of retail units will also feature in the development, alongside a new half-acre public square.
Funding has been agreed through a deal between Nikal, a property developer, and the real estate investment management firm, Lasalle Investment Management.
Richard Fee, chairman at Nikal, said: “This is a market leading and market defining deal, all done during the Covid pandemic.
“It is clear that LaSalle Investment Management share our vision for this area of Birmingham and we are delighted to be working with them again. This transaction shows the resilience, pragmatism and professionalism within the UK property industry, at its best.”
Phase one of the Exchange Square operation was also funded by a client of LaSalle. The £105m development, known as Allegro, comprises 27,500 sq ft of retail and leisure accommodation.
Julian Taylor, head of long income at LaSalle, said: “We’re pleased to have completed this acquisition as we continue to target high-quality investments offering long-term, inflation-linked income streams to meet demand from clients with liability-matching investment strategies.”