The Millhouse development will bring 34 two and three-bedroom apartments to the town as well as two new restaurants.
Nixon Blue has secured a £4.5m funding package from Paragon Development Finance, introduced by Melrose Commercial Finance, to support the development of 34 apartments.
Richard McFadzean, managing director of Nixon Blue, said: “The revival of this derelict site is an ambition that myself and Colin spotted a couple of years ago.
"The abandonment of the former nightclub was an eyesore for many years, and we look forward to transforming this area into a thriving and vibrant community for residents.
“Working with Paragon, we are able to realise our ambitions and bring a sizeable investment, on-site jobs and build a new future for this site.
"Securing funding from Paragon is critical to the project and we hope to build on our relationship for future Nixon Blue developments. Let’s hope this is the first deal of many.”
Robert Orr, managing director of Paragon Development Finance, added: “This scheme demonstrates how well-designed, considerate property development can regenerate an area to provide homes that people want to live in and commercial space that will provide retail opportunities.
"We’re delighted to support Richard and Colin at Nixon Blue, which is developing an impressive track record for good quality property development in Scotland.”
