PLANNING permission has been granted for a new indoor events venue billed as the largest in Scotland’s capital city.

AEG Europe, which runs London’s O2 Arena and Uber Arena in Berlin, got the green light for a new 8500-capacity venue from Edinburgh Council on Wednesday.

The Edinburgh Park site is also expected to maintain around 1300 jobs annually.

AEG Europe said the new indoor venue will be bigger than the 3000-capacity O2 Academy in Edinburgh.

An overall audience of more than 700,000 a year is expected to flock to the new venue, which will host music, sports and comedy events on a 200,000 square foot site.

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An external assessment suggested that the venue could bring an estimated £520 million per annum in gross value to the capital's economy.

Alex Hill, the president and chief executive of AEG Europe, said: “Having worked closely with City of Edinburgh Council, we strongly believe the arena will deliver huge benefits to the city throughout every stage of the building’s life cycle – from development to completion, for years to come when we’re bringing the world’s best artists to the Scottish stage.”

Alistair Wood, executive vice president for real estate and development at AEG Europe, said: “We thank the City of Edinburgh Council for their forward-thinking and proactive approach and for their shared vision of a new best-in-class arena for Edinburgh.”

The venue is expected to be named after a sponsor, once fundraising partners can be found.

Construction is proposed to begin in 2025 with the first events held in the venue in 2027.