A LANDMARK building in Inverness that formerly housed an Arnotts department store has been turned into flats.

More than 50 flats have been created in the Union Street building in a move developers say will address demand for rental properties in the Highland capital.

Following a “sympathetic” redevelopment, the listed building now includes a combination of 53 one and two-bedroom flats. Some 31 will be available for social rent through The Highland Council, with 22 available for mid-market-rent with HHA, a not-for-profit developer.

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The project has revived the fortunes of a property that had fallen into a poor state of repair and had lain vacant since Slaters Menswear exited the part of the property it occupied in 2003.

The wider street has been revitalised following a £12.5 million investment by HHA, The Highland Council, Scottish Government, and Inverness City Region Deal, which has turned it into a “prime residential location” in the city centre with a mix of rental tenures available.

The new flats are complemented with an attractive retail offering on the ground floor, with six units available as completed by Scottish development firm Swilken Estates.

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Gail Matheson, chief executive at HHA, said: “The demand for well-priced homes in Inverness city centre is strong and we are incredibly proud to see the efforts of HHA, The Highland Council and the project team culminate to offer a unique new rental opportunity for local residents and breathe new life into the city. 

“In a bid to retain and attract a skilled workforce to the region, as well as aid the Highland economy, it is imperative that we provide high-quality homes. HHA has completed and is underway with a variety of city centre developments that will help to reinforce Inverness as a destination of choice for businesses and residents alike.

“We look forward to welcoming new residents to the Union Street development and continuing our relationship with The Highland Council, as we identify future locations for development.”

Councillor Glynis Sinclair, chair of Highland Council's housing and property committee said: “The Highland Council working with HHA and Swilken has created much needed housing options and commercial retail space to the heart of Inverness city centre. To repurpose an iconic building to offer 53 housing options and six commercial spaces for people to live and work in the city is a fantastic achievement and of huge benefit to the Highlands.

“We know that demand to live and develop business opportunities in the Highlands and indeed the city of Inverness is high, yet suitable housing and commercial space can be a stumbling block for those wishing to take up employment or to remain in the area.  The Highland Council, alongside our partners will continue to work to build a portfolio of housing stock to enable people to have viable options available to them.

“The Union Street development is a prime example of how we reinvigorate and make positive changes within the city and I’m confident that the residents and new businesses will bring opportunities, localism and a new vibrancy to this part of the city.”