Muse Developments, regeneration division of Morgan Sindall, was selected as a preferred bidder to deliver a new square, dubbed as Marischal Square, in Aberdeen’s city centre.
The plans include the creation of new offices, a 125-bed four-star hotel, retail, cafes and restaurants, creating an abundance of new jobs as the project is delivered.
During the city centre revamp, great attention will be given to the existing 469-year-old Provost Skene’s House on site.
Demolition works on existing buildings are well underway, with the aim to start the development work later this year and meet the scheduled completion date for the scheme in 2017.
Aviva Investors will provide full funding for the scheme to create a mixed-use quarter for the city.
Muse's regional director for Scotland, Steve Turner, said: "The Marischal Square proposal fulfils the vision of the city's Bon Accord master plan by providing a new civic square, creating a fitting setting for Marischal College, as well as delivering a vibrant new mixed-use development in keeping with Aberdeen's justifiable position as one of the UK's leading business destinations.
"Marischal Square has the potential to make a long-term impact on the local economy and it is vital the city has the right mix of office and commercial space to capitalise on the opportunities that will arise.
"We will be replacing the former St Nicholas House building with new office and commercial buildings that will respect the city's granite history and be no more than seven storeys high, and that again is something the public were keen to see reflected in Marischal Square."
Marie Boulton, the deputy council leader, commented on the announcement: "The project has now reached a very exciting stage and I would encourage everyone who has a view on it to go along to the exhibition at the art gallery to see the plans, including the model of the scheme, for themselves.
"There will also be an opportunity to view the information at Marischal College after the weekend.
"Whatever your views on the Marischal Square proposals, I would encourage the Aberdeen public to make them known."
Photo Source: Building