International music stars and lucrative conferences could soon be heading for the north-east after a world-leading firm was chosen to run the region’s new £333million venue.
The hopes were raised last night after it was announced that US-based company SMG was poised to operate the new Aberdeen Exhibition and Conference Centre (AECC).
The firm already runs more than 240 flagship venues and stadiums in the likes of San Francisco, Houston, Chicago, Los Angeles, New Orleans, Manchester, Leeds and Newcastle.
The appointment of SMG as preferred bidder for the AECC was hailed as paving the way for more top acts to be attracted to the area – and for potentially securing the future of economically vital conferences such as Offshore Europe.
And council chiefs have vowed that no jobs will be lost from the current AECC, with all the workers to be transferred to the replacement venue in Bucksburn.
Local authority leader Jenny Laing said: “The new world-class exhibition and conference centre will be a fantastic venue and a great asset for Aberdeen as part of the city council’s strategic infrastructure plan, so it is to be welcomed that such an experienced company has been chosen as the preferred bidder.
“The venue will provide a modern and fit-for-purpose facility, attracting bigger names in entertainment and more major international events and conferences to the north-east, as well as being next to Aberdeen International Airport.
“I am looking forward to hearing about the exciting plans which SMG has for operating the new venue in the future.”
As well as a new 12,500 capacity arena, a green energy plant would provide heat and power for the new building and three hotels are also planned.
The aging Bridge of Don centre – which will be demolished following the construction of the new arena by early 2019 – is currently subsidised by the council to the tune of around £1million a year.
But the new building, which is being partially financed through money obtained when the council floated a bond on the stock market, could potentially prove a money spinner for the local authority.
The AECC is expected to create 600 new jobs during the construction period and 352 full-time posts when it is up-and-running, as well as bringing in an additional 4.5million visitors and £113million of related spending, while netting the Scottish economy around £63million.
SMG already operates the McCormick Place in Chicago and the Moscone Centre in San Francisco, as well as some of the UK’s largest venues, including Manchester Arena, First Direct Arena in Leeds and Metro Radio Arena in Newcastle.
A spokesman for the company said: “SMG is delighted to be announced as preferred bidder to operate the AECC.
“We are incredibly excited about the development of this new world class conference, exhibition and entertainment venue for Aberdeen, supported by the region’s on-going commitment to innovation and infrastructure.
“We look forward to bringing to bear our international networks and expertise to work with the existing team at AECC alongside the region’s passionate base of economic stakeholders, to develop an exciting new events programme for the city.
“The campus will become a jewel in the crown of the city and the wider north-east economy and we look forward to working with the city to realise our joint ambitions to support tourism, key sectors, economic development and the region’s entertainment offering.”
The new venue could be connected by a multi-million pound rail link running between the station and airport under plans raised by the council.
Last night finance convener Willie Young said that talks were ongoing with Transport Scotland about bringing the line.
SNP finance spokesman Graham Dickson added: “It was absolutely essential that a high quality operator was found to bring the best acts and business conferences to the north-east.
“This is a good news story that we have found an operator of the calibre of SMG.”