The trust rescued the buildings around three years ago from a state of dereliction and has so far contributed £190,000 of the cash required to amass before work can proceed.

The cash donated by the business support group’s access fund will be used to develop the atrium space.

Trust co-ordinator Jane Milroy said, “The level of support is indicative of the importance of the scheme to the city, not just because it secures the future of one of its most important buildings but also in terms of the economy it will bring.

“Dundee is the only city without a youth hostel. Once complete, Gardyne’s will have a minimum of 90 beds and the trust is determined to achieve a five-star rating — making it the only hostel to achieve this highest level award in any city in Scotland.

“The project is proceeding towards going on site soon and it is anticipated work will begin at the end of the summer.

“All public and private sector funding is in place and the trust is now only £10,000 short of the target set for its own financial contribution to the scheme.”

Gardyne’s Land originates from 1560 and takes its name from John Gardyne, the first recorded owner of the rear building of the three, the merchant’s house.