Construction of a major new healthcare facility in Edinburgh is set to start after the financial contracts were agreed.

The news follows the approval of the full business case by the Scottish Government and financial close for the project.

The new £150 million co-located building will see services from the Royal Hospital for Sick Children, Department of Clinical Neurosciences and Child and Adolescent Mental Health Service brought together in a modern and high-quality setting at Little France.

Construction works will start over the course of the next few weeks and the new building, which will adjoin the Royal Infirmary of Edinburgh, is anticipated to open in autumn 2017.

The six storey building (including basement) will have a large atrium with a shop and café, a stunning skylight linking both hospital entrances, a helipad on the roof and a link building adjoining adult and paediatric emergency departments.

It will also bring with it an increase in single rooms with ensuite facilities and a range of new technology.

Health secretary Shona Robison, said: “This is a momentous date for this project and I’m personally very pleased that work will soon be about to begin on the new co-located Royal Hospital for Sick Children and Department of Clinical Neurosciences.

“The new development brings paediatric care, specialist neonatal care, neurosciences and adult and children’s emergency departments all together in one place, making access to services much easier for patients and health professionals alike.

“The Scottish Government is investing over £2 billion in Scotland’s health infrastructure over the spending review period, with this development being one of many that demonstrate the Scottish Government’s commitment to continually improving health services. The investment in this development will ensure the hospital campus at Little France can continue to develop as a modern hub of research and medical practice.”

Susan Goldsmith, finance director, NHS Lothian, said: “We are delighted to have reached this point and now look forward with anticipation to seeing the new facility taking shape over the coming years.

“This is an extremely exciting time in the proud history of the Royal Hospital for Sick Children, along with the Child and Adolescent Mental Health Service and Department of Clinical Neurosciences, which will find a high-quality new home at Little France from 2017.

“The building designs have been heavily influenced by staff, patients and families and, in addition to offering a modern, light and spacious environment, will also enhance the clinical services we deliver.”

Peter Reekie, Scottish Futures Trust, deputy chief executive and director of investments, added: “This is a fantastic deal for NHS Lothian and its partners, bringing investment into the Lothians and allowing construction to start on a great new building which will support many hundreds of jobs as it is built.”