The project, which is being delivered by Stirling Council in partnership with Stirling Development Agency and the council’s joint venture housing company Steadfast Homes, will be built by construction and manufacturing business CCG (Scotland) Ltd.

The development will create three ground floor retail units and 53 one and two bedroom affordable apartments over six storeys.

Stirling Council is investing around £8 million in the project, which is located on vacant land on the corner of Goosecroft Road and Maxwell Place. Steadfast Homes will rent the properties at mid-market rates and manage the development on an ongoing basis.

Housing convenor Councillor Violet Weir said: “This ambitious development will provide much-needing affordable housing for Stirling Council, in the city centre with unrivalled access to local amenities.”

Head of housing Tony Cain added: “This project will transform a derelict site on the edge of the city centre conservation area and provide Stirling with a striking new modern building.”

CCG (Scotland) Ltd development manager Bruce Lindsay added: “We are delighted to be working with Stirling Council and partners to support the regeneration of this vacant site, creating a vibrant community with the construction of affordable homes and retail space.”

The development will include a public art installation celebrating the work of ground-breaking animator Norman McLaren. An augmented reality application will highlight his work, the history of the site and the recent archaeological discovery of the Blackfriars Priory.

Council Leader Johanna Boyd said: “The planned building is attractive and contemporary, and includes design elements that are sensitive to Stirling’s historical setting. This is another excellent example of the council working with our partners to provide jobs and investment in the Stirling area.”

The development is expected to be completed by Christmas 2015, with apartments available shortly thereafter.