Plans to develop a major business park at Inverness Airport have moved forward with the creation of a joint venture company to spearhead the project.

The consortium of interests that intends to develop the park on a 250 hectare site has formalised its partnership with the creation of Inverness Airport Business Park Limited.

The joint venture company shareholders are Highlands and Islands Airports Limited, Inverness and Nairn Enterprise and Moray Estates Development Company. The company will have its own board of directors and will focus on attracting businesses and developers to the business park. The Highland Council is party to the agreement as a loan stock provider through its funding for the airport's new link road to the A96.

The airport business park is set to play a key role in attracting inward investment to the area and enabling business expansion on the main A96 road corridor between the City of Inverness and Nairn.

It is estimated that the first phase of development will include the creation of around 16,500 square metres of business accommodation, including an airport hotel. Around 260,000 square metres of business, light industrial, freight distribution, and hotel and conferencing accommodation could be developed on the site over 30 years, supporting as many as 5,000 full-time jobs.

An application for outline planning permission to develop Inverness Airport Business Park was submitted to the local planning authority in June 2004 and a decision on the application is expected later this year. The scheme is supported by The Highland Council and Highlands and Islands Enterprise and conforms to the strategic development plan for the area.

The construction of a new £4 million road link between the airport and the A96 is scheduled to start within weeks and is a key step towards unlocking the development potential of the land surrounding the airport. The road and associated access infrastructure is being funded by the European Regional Development Fund through the Highlands and Islands Special Transitional Programme 2000-2006, Inverness and Nairn Enterprise, Highlands and Islands Airports Limited and The Highland Council.

Bob Macleod, Managing Director of HIAL, said: "The airport is a major economic driver for the region and the business park will release the exciting development potential of the land around the airport. We estimate that the airport already generates in excess of £100 million for the region a year and the business park has the potential to become a hub for commercial activity with businesses benefiting from an expanding range of air connections.

"A huge amount of work has gone into this project in recent years and we are delighted that the partnership has now been formalised and that the joint venture company can start work on the next phase of the park's development," said Mr Macleod.

Stuart Black, Chief Executive of INE, said: "Development land is at a premium in the area and the business park will play a crucial role in supporting business growth and inward investment that will create new jobs and support economic development. This is a very exciting partnership project which aims to fully realise the business synergies between an expanding airport and long term economic prosperity for the region."

Andrew Howard, Managing Director of Moray Estates Development Company, said: "We are very pleased that this genuine public-private partnership is now in a position to move towards fulfilling the potential of this strategically important site."

ENDS