Interserve has exchanged contracts to develop a £200m mixed-use site next to Haymarket Station in Edinburgh as part of a joint venture with landowner Tiger Developments.
Interserve will initially invest £10.5m in the scheme, which will incorporate commercial offices, retail units, leisure use, hotel accommodation and underground parking.
The contractor will then carry out construction work worth around £150m.
The Haymarket site already has full planning, with tenants already signed up for the initial development phase including Tesco and serviced apartments provider Staycity.
Food chains Prezzo and Pret A Manger are already committed to the second phase, together with advanced discussions with other occupiers for a further 70,000 sq ft of retail and office space.
Interserve chief executive 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.”
The construction project will be delivered by Interserve’s local construction team, based in Livingston. Around 250 Interserve employees will work on the project – employed either directly by the company, or by its local supply chain and specialist subcontractors.
Tiger will partner with Interserve in managing the marketing and development of the Haymarket site.
Tiger 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.
“Our team has devoted a significant amount of time and energy so far in designing a scheme which now represents the best solution for this challenging site.”