The regeneration of the Edinburgh Royal Infirmary site, with a mixture of residential, retail and business uses, has been given the green light by the Scottish Executive.
Edinburgh City Council has already approved plans by Southside Capital - a joint venture between Bank of Scotland, Kilmartin Property Group and Taylor Woodrow - and Scottish ministers have decided not to call in the application.
Work is expected to begin at the 19-acre (8 ha) site early this year, but the£400 million project will take seven years to complete.
The Edinburgh Royal Infirmary will be rebranded Quartermile, and the developers plan to retain the existing street pattern - while creating public spaces and places to eat and drink in converted buildings.
Shops and a supermarket will be provided in the base of the new buildings, with offices and working spaces above.
More than 650 new homes are included in the proposals.
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