A £2.3million property investment has been announced that will re-develop a prime Portree town-centre site and create the potential for new jobs in Skye.

The developments include light industrial workshops at the Portree Industrial Estate and an 11,000 sq ft speculative office space in the centre of Portree.

Highlands & Islands Properties Ltd are behind the £2.382million project which is being part-financed with a £673,000 contribution from HIE Skye and Wester Ross .

The company will first build industrial units within the industrial estate on Dunvegan Road to be leased to small businesses at market rates. The second development phase will entail demolition and clearance of the site currently occupied by Rapsons bus depot in the centre of  Portree and the development and lease of 11,000 sq ft of speculative office space over three floors.

Rapsons Coaches which operate Citylink services between Skye and Inverness, Edinburgh and Glasgow will seek an alternative base outwith the town centre.

Chief executive of HIE Skye and Wester Ross, Robert Muir said: "We have worked closely with Highlands & Islands Properties Ltd to release the potential of this major project. We have agreed the sale of one of the plots on the Portree Industrial Estate and have offered a financial contribution towards the overall developments.

"This provides better value for money than could be achieved through the HIE network developing these sites at its own hand and will create an opportunity for a number of local businesses to lease industrial and office space which is currently at a premium."

It is estimated that up to 41 jobs could be created over 10 years by businesses taking up occupation of the industrial and office developments as well as through construction works carried out during the two phases.

David Cameron of Highlands & Islands Properties Ltd said: "Re-locating the old bus depot will help reduce the amount of congestion in the centre of Portree. Building office accommodation will also help contribute to a cleaner and improved environment for both locals and visitors alike."