Arsenal football club has today announced it has secured funding for its £357m stadium development at Ashburton Grove, London.

Ashburton Properties – a member of the Arsenal Group, which owns the stadium site – has obtained a £260m loan from a group of backers, which includes Bank of Scotland, Espirito Santo Investment and The Bank of Ireland.

The club will provide the rest of the funding through a number of avenues, which include turning the existing stadium at Highbury into a residential area.

Peter Hill-Wood, chair, said: “This is excellent news for Arsenal. Over recent years we have established ourselves as one of the leading clubs in Europe and the stadium will provide us with the opportunity to sustain and build on this position.”

Construction work on the 60,000-seater stadium has now recommenced and will include a waste and recycling centre and depot for Islington Council and the upgrading of surrounding transport facilities

HOK Sport has designed the facilities and Arsenal football club hopes the extensive executive box and hospitality facilities will result in increased match day revenues for the group.

Danny Fiszman, director, said: “We have now effectively concluded the pre-construction phase of the project and secured the stadium with all its benefits. We will be delivering one of the largest regeneration schemes in the country.”

Work is expected to reach completion in time for the 2006-7 football season, and will include a community sports centre. Details: www.arsenal.com