DEVELOPERS of the former Terry's site have secured a further £2.2 million to work on the site, to fund a new care village.

Springfield Healthcare Group hope to create a new care village at the historic site due to open in January 2017, which is set to cost £7 million and will see the factory's structure restored and 82 new care suites and eight luxury apartments at the site.

The group announced yesterday it had secured £2.2 million from BGF - which provides funding to small and mid-sized businesses - and will borrow more than £5 million to complete the work.

Graeme Lee, CEO of Springfield, said: "We are delighted to be bringing this beautiful building back to life. Its location in the heart of the York community will offer leading elderly care for residents in a thriving local community.

"The development gives us an opportunity to revolutionise how dementia care is provided, prioritising support for this challenging condition. We will provide a thriving community, which enables residents to maximise their independence and security in a stunning environment."

Guy Van Dichele, interim director of adult social care with City of York Council, said: "Our aim is to ensure that older people in York have access to a wide variety of high-quality care and support options to meet their different, and changing, needs. Quality dementia care and support is an essential strand of our ambition to make York a dementia-friendly city."

Richard Taylor from BGF said: "Graeme and his team have fantastic ambitions for Springfield and it’s great to see the continued roll-out of the care village model. Springfield has already completed a number of development projects and acquisitions since our initial investment. We are delighted to be providing further investment to support the development of the new care village in York."

The centrepiece of the new development will see the glass atrium restored and feature an internal market square, with cafes, street lighting, outdoor dining, shops, and other facilities, allowing residents to wander the surroundings safely, in an ambient environment which sensitively merges indoors and outdoors.