Retirement home provider McCarthy & Stone, which acquired the site from Highland Council, will build 45 homes on the vacant site, with the local authority delivering 40 affordable retirement homes.

It’s estimated that 150 jobs will be created as a result of construction starting.

The remaining building on the site, the historic and listed Inverness Royal Academy, will be converted by Wasps Studios into a studio and art gallery for local artists.

The Scottish Futures Trust (SFT) has been working with the Scottish Funding Council and Inverness College to deliver best value and secure the most appropriate end use for the Midmills site that became surplus when the College relocated to its new, state-of-the-art facility on the Beechwood Campus in 2015.

Anna Tozer, strategic disposals manager at the Scottish Futures Trust, said: “Our role is to work with public sector bodies to help them sell sites in ways that not only deliver receipts to be reinvested in public services, but also secures the otherwise uncertain future of significant listed buildings.

“We’ve secured a very positive outcome for this site which ensures much-needed retirement homes will be built. Securing the architecturally significant Inverness Royal Academy building for the local community to use and enjoy as an art facility is a real bonus, helping safeguard its future.”