Full construction works have officially commenced on the South Street regeneration project in Elgin, following the successful completion of initial preparatory works on the site.

This major milestone follows a series of necessary enabling works carried out over 2025, which included demolition activities and detailed archaeological surveys. The project represents an innovative joint partnership between Moray Council, UHI Moray, Cairn Housing Association, and developer Robertson Property Ltd, serving as a core initiative within the overarching Elgin City Centre Masterplan.

The mixed-use development will incorporate the Moray Growth Deal's Business Enterprise Hub, supported by £750,000 in UK Government funding from the Elgin Neighbourhood Board's Pride in Place initiative. Additionally, the project will feature 38 affordable one- and two-bedroom flats as part of the Housing Mix Delivery, space for three small commercial or retail units, a high-quality public realm, and a reinstated pedestrian link connecting South Street to the High Street via Newmarket Close to align with adjacent Levelling Up Fund works.

Both the Business Enterprise Hub and the Housing Mix Delivery are major strategic parts of the £100 million Moray Growth Deal, which is financed by the Scottish Government. Furthermore, the development has been awarded £5.06 million from the UK Government as part of the broader £18.3 million Levelling Up Fund for the city centre masterplan, alongside £3.9 million from the Scottish Government's Affordable Housing Supply Programme (AHSP) to fund the residential units.

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Collaborative agreements have been established to handle the long-term management, delivery, and ownership of the completed development. Moray Council will oversee the public realm, UHI Moray will own and operate the Business Enterprise Hub, and Cairn Housing Association will manage the residential properties as the Registered Social Landlord (RSL).

Main construction works were launched this week by Robertson Construction Northern. Once finalised, the South Street development aims to reinforce Elgin's town centre, establishing a better-connected, more active, and welcoming environment for local businesses, residents, and visitors.

Councillor Marc Macrae, Moray Council Lead for Levelling Up Fund and Moray Growth Deal, said: "To see tangible progress on South Street is a significant milestone, not only for this project, but the wider regeneration works in Moray. This is a culmination of the hard work of all our team and partners involved, to which I congratulate you. I look forward to seeing construction progress through 2026/2027 as we continue to improve our public offering."

Elliot Robertson, Chief Executive Officer, Robertson Group, said: "South Street reflects a strong partnership between the public and private sectors, working together to unlock a complex site and deliver meaningful regeneration. It demonstrates how aligned partners can move projects forward and create lasting value for the local area."

Audrey Simpson, Cairn (RSL) CEO, commented: "We're proud to be part of this important regeneration project for Elgin, which will deliver much-needed affordable homes in the heart of the town centre. Partnership working has been key to bringing the project to this stage, and we look forward to seeing the development progress and the positive impact it will have for the local community in the years ahead."

David Patterson, Principal and Chief Executive of UHI Moray, said: "The Business Enterprise Hub will provide flexible spaces for small, existing and new, businesses to innovate and upskill. The location of the hub in the town centre and its proximity to our main UHI Moray campus means we are well positioned to make engagement as accessible as possible and provide the invaluable support required to build a thriving business community."

Jenny Urquhart, Chair of the Elgin Neighbourhood Board, also commented: "The Elgin Neighbourhood Board exists to set clear local priorities for Elgin based on community feedback and turn local ambitions into practical action, so we are delighted to have provided additional funding to support the new UHI Moray Business Enterprise Hub on South Street."