The £100m project will be fully funded by Aviva Investors.
Muse, the urban regeneration division of Morgan Sindall, is proposing to develop a mixed-use quarter for the city on the brownfield site which previously housed the city council’s corporate headquarters. The proposal is for a 10-storey development of offices, a hotel, cafés, restaurants and shops. There will also be public space including a small civic square and pedestrianising Broad Street.
The council will lease the development from Muse and receive a proportion of the rental profits for 35 years, after which the site and development will transfer into council ownership.
A public consultation lasting 12 weeks will be carried out before any planning application is submitted. The site will be developed in a single phase and Muse aims for completion during 2016.
The site will be developed in a single phase and Muse envisages completion during 2016, tying in with Aberdeen's aspirations to be UK City of Culture in 2017 – assuming a straight transfer to construction following completion of the demolition of St Nicholas House.
Morgan Sindall Group chief executive John Morgan said: "Muse Developments is delighted with the opportunity of working on this scheme. We have a strong track record in similar joint venture regeneration projects and are confident that we will deliver a successful living and working destination. We are excited to be working with Aberdeen City Council and look forward to bringing innovation and long-term value for the people of Aberdeen."