Interserve has formed a joint venture (JV) with Tiger Developments to construct a £200m mixed-use development next to Haymarket station in Edinburgh, UK.
Interserve will initially invest £10.5m in the project, which will feature offices, retail units, leisure use, hotel accommodation and underground parking.
As per the deal, Interserve Construction will carry out the building works for £150m.
The development secured planning permission in March 2011 and construction was halted due to the recession.
Tesco and serviced apartment providers Staycity have already signed up for the first phase of the development while Prezzo and Pret A Manger are committed for the second phase.
Interserve said the developers are currently in advanced discussions with other companies for leasing out a further 70,000ft² of retail and office space.
Interserve CEO Adrian Ringrose said Edinburgh’s Haymarket site will provide a gateway for the city centre, linking 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," Ringrose said.
Tiger Developments will partner with Interserve in managing the marketing and development of the Haymarket site.
Tiger Developments development director Simon Fox said, "Throughout the planning process we have worked hard to develop our proposals in-line with the needs of the city and the local community."
Image: The development will be built on a site next to Haymarket station in Edinburgh. Photo: Interserve.