AEG Europe announced on Wednesday that it has received planning permission from the City of Edinburgh Council for a new 8,500-capacity entertainment arena in Edinburgh Park.

“The council announced the decision at midday today after the application was put forward with a recommendation for approval following an extensive initial planning consultation period during which the submission was met with a wide range of support,” said AEG Europe.

AEG Europe, the owners of London’s O2 Arena and Uber Arena in Berlin, are working with developers and site owners Parabola on the new arena which will span 18,500 square metres of regeneration project area of Edinburgh Park on the west side of the Scottish capital.

The firm’s latest venue investment is expected to bring an estimated £520 million per annum in gross value to the Edinburgh economy.

It is also estimated that the arena will inject a further £83 million per annum back into the local economy, through the 700,000 visitors the arena is expected to attract each year, based on external assessment. It will also create 1,000 operational jobs in and around the arena.

Alex Hill, President and CEO of AEG Europe, said: “We are delighted to have been granted planning consent for a cutting-edge new venue for Edinburgh. Having worked closely with City of Edinburgh Council, we strongly believe the arena will deliver huge benefits to the city throughout every stage of the building’s life cycle – from development to completion, for years to come when we’re bringing the world’s  best artists to the Scottish stage.”

Alistair Wood, Executive Vice President, Real Estate and Development, AEG Europe, said: “We thank the City of Edinburgh Council for their forward-thinking and proactive approach and for their shared vision of a new best-in-class arena for Edinburgh.

“We now turn our attention to expanding on these plans through the appointment of an external contractor, as well as seeking naming rights partners and finalising  funding partners.”

Edinburgh Park Arena will be privately funded and AEG Europe are curently finalising funding  partners. Once an external contractor has been appointed and financed raised, construction is proposed to begin in 2025 and will continue over the course of two years, with the aim of delivering the first event in 2027.