Muse Developments has welcomed a decision by Aberdeen City Council to approve its planning application for a major regeneration project.

The £107m Marischal Square development, according to the developers, will transform one of the city's key locations.

With full approval of the plans now in place, Muse can now being preparing the site ahead of construction work which is expected to being in January 2015.

The plans for the former St. Nicholas House site are for a mixed-use development, including 175,000 sq ft of Grade 'A' office space, a 126-bed Residence Inn hotel by Marriot, bar and restaurant space, as well as a greater prominence for the historic Provost Skene's House.

Some 300 construction jobs will be created during the building phase of the project, while the development will have the potential to support or create 1,500 jobs when fully occupied.

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Welcoming the Council's decision, Stephen Turner, Muse Developments' Regional Director for Scotland, commented: "This decision can be the catalyst for further development of the city centre and the further enhancement of Aberdeen's position as a key business and leisure destination in the UK.

"People living and working in Aberdeen have helped shape this development, as part of the wide ranging consultation exercise we conducted around the project, and this decision has reflected the views they expressed throughout that process.

"The Marischal Square development will provide a vibrant new mixed-use area for the city centre which will help deliver a positive long-term impact on the local economy and provide the people of Aberdeen with a space of which they can be proud."

Councillor Marie Boulton, Deputy Leader of Aberdeen City Council, added: "The Marischal Square development provides further evidence that Aberdeen is open for business, with new office space, hotel, retail and catering set to regenerate a key site at the heart of the city centre.

"Marischal Square is one of the key projects in the better image for Aberdeen strand of the Council's Strategic Infrastructure Plan as is the refurbishment of Aberdeen Art Gallery. It's great news to see these proposals moving forward into the delivery stage as we continue the work on the City Centre Masterplan."

The Marischal Square development is being fully funded by Aviva Investors. Under the agreement, Aberdeen City Council lease the development and receive rental profits for 35 years. After this, the site and development will transfer into the council's ownership.

(JP/CD)