A joint venture company has been established to move ahead construction on £200m mixed-use development in the heart of Edinburgh - one of the city centre's last remaining major gap sites.

Construction group Interserve has partnered with current landowner Tiger Developments to progress the project, which received detailed planning approval in March 2011.

The site will incorporate commercial offices, retail units, leisure use, hotel accommodation and underground parking, and will create up to 3,500 jobs.

Tesco and serviced apartments provider StayCity have already signed up for the initial phase of the development, while food chains Prezzo and Pret A Manger are committed to the second phase.

Interserve chief executive Adrian Ringrose said the development will link seamlessly with Haymarket railway station and is adjacent to the city's new tram network.

"The proposals for a mix of leisure, retail and office space, linked by open public spaces, will act as a catalyst to regenerate the commercial heart of the area as well as create jobs," he said.

The build will be delivered by Interserve's local construction team with around 250 employees expected to work on the project.