The firm is to head the work for the Aberdeen City Council site which is to be a destination venue featuring international-style food, drink, and a retail market.

Morrison plans to work alongside other local firms for subcontracting work in order to deliver a world-class attraction for the North East.

The development will also improve pedestrian connectivity between Union Street and the bus and railway stations via The Green and enliven Hadden Street and Market Street with urban realm improvements in and around The Green.

The site is to be developed with attractive market-style floorspace to create a destination venue with marketplace elements promoting local produce and goods alongside continental-style delicatessen, cafes, and food outlets.

The design will feature a mixture of small retail units alongside space for temporary and pop-up facilities to allow for increased variety and would be flexible to seasonal requirements. There would also be a flexible-use outside space on the Green which could be used for events or pop-up market space.

Cllr Christian Allard, co-leader of Aberdeen City Council, said: “We welcome a Scottish company has been chosen to be the main contractor for the site.

“Morrison Construction has also delivered two recently-built new primary schools for the city council so will know the area well and how important this new attraction is to the revitalisation of Union Street.”

Cllr Ian Yuill, co-leader of Aberdeen City Council, said: “The market development will create a vibrant and exciting new destination for people to visit in the city centre, as well as create an improved connection between Union Street, The Green, and the bus and train stations.

“It is good a Scottish company is to be the main contractor for the new market which will provide a range of food and drink outlets, providing a boost to the local economy as well as helping Union Street and the city centre continue to move forward.”

Colin Milne, project director for Morrison Construction Building North East, said: “We are delighted to be delivering the new Aberdeen Market, on behalf of hub North Scotland/ Aberdeen City Council, as part of the Aberdeen City Vision project for the regeneration of Union Street.

“We look forward to working with all the stakeholders involved to create another high-quality landmark public facility for the people of the city, following our recent successful projects at Countesswells Primary School and the Torry Community Hub.”

Richard Park, chief executive, Hub North Scotland, which is Aberdeen City Council’s development partner for the project, said: “We are delighted to appoint Morrison Construction North East to this landmark project. They have a proven track record for delivering top quality buildings and an excellent local supply chain. We look forward to working with them not only in constructing a superb market building but also delivering positive and meaningful community benefits and social impact during the works.”

Demolition work has taken place on the former BHS building and legal work is continuing in preparation for the next stage of the works. A revised planning application for the new market has been submitted. The former BHS building had been vacant for approximately seven years before it was bought by the city council.

The central section of Union Street and Aberdeen market building are critical components in the Heart of the City area of intervention identified in the City Centre Masterplan, which has the key objective to reinstate the central role of Union Street in the life of the city, establishing stronger linkages north and south and creating a destination not just for shopping but for many city activities.

The city council is to receive £20 million from the UK Levelling Up Fund which will be used towards the development of the new market building and nearby streetscaping.