It is one of the most spectacular 21st-century educational buildings in Leicester, but it is steeped in history.

The main section of a £10 million extension of the popular Wyggeston and Queen Elizabeth I College, next to the University of Leicester, officially opened yesterday.

The building, which will house art and design, and performing arts students, is named after James Went, headmaster of Leicester's original Wyggeston Boys' School for 40 years at the end of the 19th century.

Tony Barradell, the college's chairman of governors, said although the college was judged "outstanding" by Ofsted in its latest report, inspectors had been critical of much of the original building.

He said: "Ofsted saw our 1930s accommodation and how we had crammed our art and design classes into it, and how it, therefore, came up to a lower standard than the rest of the college. We were told, if we let that go on, we would begin to struggle. It's great, because we're oversubscribed, but this will mean more 16-year-olds will be able to come and benefit from what we do here."

The college is in the former boys' school, which relocated to the University Road site before the Second World War. The new building is on the site of a former outdoor swimming pool. Students said they were happy to be able to use the workshops, classrooms and exhibition space in the new building.

Textiles student Suckpreet Jugpal, 17, of Belgrave, said: "We were cramped in lessons before, but now there's lots of light and it's comfortable.

"I think, if people visit on an open day, it will make them want to come here ."

Rosa Schofield, 18, of Leicester city centre, is an A-level design student.

She said: "It's so much better to study somewhere that's not small and old, because that doesn't really make people want to work."

Business studies student Herveeta Johal, 18, of Braunstone, said: "The fact that it's bright, modern and spacious means people actually want to come here and hang out."

The development, which includes the refurbishment of science laboratories in the college's main 1930s block, was finalised before the funding crisis at the Government agency which oversees further education.

Mark Haysom, head of the Learning and Skills Council was due to open the new buildings, but resigned amid the crisis this week.

His place was taken by Tom Crompton, the regional director, who said: "This is an uplifting building and £10 million is not a cost – it's an investment in the young people and the future."

The development was designed by architect Brian Rule, of Pick Everard, who said he wanted to produce a building full of natural light and with an exciting style.

He said: "It's important to enjoy learning and you can do that in an inspirational environment."

The project is one of a number of major building schemes in post-16 education in the city, which includes the relocation of Gateway College to Hamilton and developments at Leicester and Regent colleges.