The first tenants for Kirkwall's newest office development are in the process of being secured, with new jobs being created as a result.

Northlink Ferries Orkney and Shetland Ltd and John Jolly are expanding their operations and need more space to house increasing numbers of staff.  Both companies are in the process of negotiating lease agreements on space within the £1.4 million office and housing development.  Funded by Orkney Enterprise and Orkney Housing Association the development comprises four offices and 22 flats, which are already occupied.

Northlink Ferries are exploring options to relocate and expand their call centre operation from Stromness to Kirkwall, creating several jobs. Gareth Crichton from Northlink said: "Although the company would regret having to leave Stromness, the move is a sign of positive development for Northlink in the islands creating space for immediate expansion and the potential for relocation of further Northlink operating functions in the future."

John Jolly, Kirkwall-based shipbrokers and stevedores are a business with significant expansion plans.  As a result of securing the contract to supply shore-based services to Northlink, John Jolly has had to up employment levels, meaning 12 staff will be based in Kiln Corner.  Commenting on the move to new offices, Capt. Bill Spence said: "After 70 years in our Bridge Street property, we decided it was just too small and that we required larger premises with modern facilities.  As a result we have been able to expand our workforce and the services we offer.

"Kiln Corner is an ideal location for us being close to the pier and we are also delighted that Northlink, one of our main clients, are likely to be moving in next door."

Chief executive of Orkney Enterprise, Ken Grant said: "Orkney Enterprise has invested over £390,000 in the development of Kiln Corner with the intention of attracting an inward investor to Orkney or to help local businesses expand their operations.

"We are delighted to have Northlink Ferries and John Jolly as tenants with both companies fitting the relevant criteria."

Brian Kynoch, chairman of Orkney Enterprise commented: "In our efforts to attract suitable tenants, the board was unanimous in waiting for the right type of activity for the complex.  As directors of the Local Enterprise Company we are delighted that our strategy has enabled the growth and expansion of these businesses within Orkney."