A £24m commercial development in Edinburgh's Exchange district has started with demolition work of the existing building underway.

The site at 2 Semple Street, which was purchased by GSS Developments Ltd from Aberdeen Asset Management in 2015, will see 35,000 sq ft of office space and 11,000 sq ft of ground floor retail units constructed.

Paul Stevenson, GSS Developments director, said: "Currently there are no available new build Grade A office developments coming out of the ground in central Edinburgh, therefore the strong appeal for potential tenants is the absolute certainty on delivery and quality of product. With a number of well-known occupier lease expiries in 2018, this delivery certainty allows us to discuss with confidence definite completion and move-in dates with occupiers."

The office space will be over five floors and could accommodate up to 350 employees, whilst the retail space is divided in to a 7,500 sq ft unit fronting Lothian Road and a dividable 3,000 sq ft unit on Fountainbridge.

The main contractors should be appointed by the middle of April, with construction due to begin early June 2016 and a firm completion date of January 2018.