Interserve, the international support services and construction group, has exchanged contracts to develop the Haymarket area of Edinburgh into a mixed-use site.
The group has formed a joint venture (JV) company with the current land owner, Tiger Developments, and will initially invest £10.5m in the project.
A further £150m-worth of construction works will be undertaken by Interserve Construction.
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The site, which will incorporate commercial offices, retail units, leisure use, hotel accommodation and underground parking, has the potential to create 3,500 jobs.
Group Chief Executive Officer Adrian Ringrose said: "Edinburgh's Haymarket site remains one of the best city centre developments schemes to be found anywhere in the UK. It will provide a strategic gateway for the city centre, linking seamlessly with one of Scotland's busiest railway stations, as well as being adjacent to the city's new tram network.
"The proposals for a mix of leisure, retail and office space, linked by open public spaces, will act as a catalyst to regenerate the commercial heart of the area as well as create jobs.
"Our involvement and financial commitment to this project underlines Interserve's ability in creating value by structuring asset-based funding in combination with the design and delivery of large scale projects."
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