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AEG Europe, owner operators of venues including The O2, has announced that its planning application to build an 8,500-capacity arena in Edinburgh has been recommended for approval.

In an interview with the Edinburgh News, AEG Europe executive vice-president for real estate and development Alistair Wood said that discussions have already begun with builders, with the aim of beginning construction next year and staging the arena’s first event in 2027.

AEG said the venue is estimated to bring £520m per annum in gross value into the local economy and create 1,350 jobs. Spanning 18,500sqm, it will be situated in the Edinburgh Park area.

The company previously announced that it was looking for a naming rights partner for the facility, and hoped to receive planning permission this month.

Wood said, “We’re delighted that the proposals for a new arena in Edinburgh are recommended for approval and we look forward to presenting the facts about the proposals at committee and answering any questions elected members may have.

“This reflects month of consultation and discussion with the public and key stakeholders prior to the application being submitted and a positive ongoing dialogue with all throughout the application process.

“This is the most sustainable site available and we’re determined to enhance Edinburgh as a venue for live music and other events. We are hopeful the Planning Committee will support the officers’ recommendations.”