Highlands and Islands Enterprise (HIE) is set to move from its present headquarters in the centre of Inverness to a new building on the outskirts of the Highland capital.

Nairn-based property developer Narden, in partnership with Jaymarke of Aberdeen, plan to create a modern office development at Inverness Retail and Business Park which the enterprise agency will move into early in 2002.

The proposed site is next to the existing premises of Forest Enterprise, just behind the Warner Village cinema.

Design and construction costs will be met by the developer, who will then lease the premises to HIE.

At about 33,000 square feet, it will be 30 per cent smaller than Bridge House, HIE's present building, which opened in 1971 and is scheduled for redevelopment.

The reduction in floorspace reflects both the greater efficiency which the new accommodation will offer and the fact that fewer employees will be based there.

Later this year HIE plans to disperse around 20 jobs to a new service centre in the Western Isles.

Sandy Cumming, HIE's chief executive, is one of several members of staff who have spent much of their working lives in Bridge House, which was previously home to the agency's predecessor, the Highlands and Islands Development Board.

"With redevelopment on the horizon, last year we invited several locally-based developers to submit proposals for a new building on sites around Inverness,"
Mr Cumming explained.

"The different options which they submitted were then evaluated according to strict criteria and with independent external advice.

"In the end, we chose Inverness Retail and Business Park for several reasons, including value for money, the flexibility of the building design and the location."

Peter Mackintosh, chairman of Narden, said:

"We are delighted that HIE have chosen Inverness Retail and Business Park for their new headquarters. This now firmly endorses Inverness Business Park as the North's premier business location.

"With this excellent news today, we are positive that other prestigious companies will follow HIE to the Park which provides the highest quality environment for staff, clients and customers."

HIE's proposed move to new premises has been approved by the Scottish Executive. A detailed planning application will shortly be submitted to The Highland Council.