Building work has begun on two new projects in Lerwick totalling £3.5 million which when complete will accommodate 55 tenants.
Twelve one-bedroom flats are being constructed by Hjaltland Housing Association for 17 people at Fort Road in the same style as the association’s Excelsior Place development next door.
Fourteen properties are under way at Pegasus Place, just off Ladies Drive at the North Staney Hill. They will house a total of 38 people.
The developments, a £3.5 million investment by Hjaltland, are part-funded by a £1.25 million package from Bank of Scotland, extending the bank’s support to the association to £4.5 million, and the Scottish government.
The Fort Road site, the location of the former Shetland Islands Council housing offices, was gifted to Hjaltland by the local authority.
Hjaltland chief executive Bryan Leask said: “This is yet another example of us working in close partnership with the local authority to provide homes to meet the high level of demand in Shetland.
“There are currently 360 people on the housing list for Lerwick and the Fort Road and Pegasus Place developments will make a substantial contribution to reducing those numbers.”
Designed by Dougie Thomson of Gilberts Architects, the £1.5 million Fort Road development, to be named Lyndhurst Place after the original house which formed part of the Excelsior/Moonies Wake bar and nightclub, is being built by Hunter & Morrison.
The £1.9 million Pegasus Place scheme, to be named Wista (meaning an unsheltered, windswept place), will comprise eight two-person flats, four three-person semi-detached houses and two five-person semi-detached houses.
They have been designed by Redman + Sutherland and are being built by E&H Building Contractors.
The homes will be timber clad with enhanced insulation. They will be heated by air source heat pumps to reduce heating costs.
For both developments the engineer is Arch Henderson, while Michael Thomson is the quantity surveyor.
Both developments are scheduled for completion in September next year.