The future of insurance company Aviva in Perth has been secured after the company bought the building it leased.
More than 1,000 people work at the Pitheavlis building and there were fears the company could pull out of Perth when its lease ran out in 2014.
Aviva says the purchase is part of its “ongoing commitment” to Perth. The firm says the quality of the staff had been a major factor in deciding to stay.
As one of the biggest employers in Perth and Kinross, there had been fears that the company would relocate to Glasgow after it announced job cuts across the business.
The news of the purchase has been welcomed by politicians, who called it a “massive vote of confidence”.
Leader of Perth and Kinross Council Ian Miller said: “The purchase of the building hopefully means Aviva is now here to stay.
“The company is a long-standing and major local employer and I am sure employees and many local families will be more than delighted with today’s announcement.”
Roseanna Cunningham, MSP for Perthshire South and Kinross-shire, said: “After all the uncertainty of recent months, the decision by Aviva to purchase the Pitheavlis site demonstrates a genuine long-term commitment to Perth and the workforce that is based here.”
Perthshire MP Pete Wishart said the move was a great boost for Perth’s economy.
“This brilliant news will be welcomed by all who have Perthshire’s economic interests at heart. It is a ringing endorsement of Perth as a great place to work and of the talented workforce that is available here.”
John Swinney, MSP for North Perthshire, said: “Aviva’s decision is a vote of confidence in Perth and its workforce. It also cements the involvement of Aviva in Perth, and that provides a great assurance about the long-term security of employment.”
Aviva’s lease on Pitheavlis was due to expire at the end of 2014. As part of its normal practice, the company reviewed its property strategy from 2015 onwards to ensure it is fit for the future.
This review concluded that purchasing the Pitheavlis building to serve as an ongoing centre of excellence for Aviva’s UK General Insurance business is the best option from an economic, employee and customer care point of view.
It is unclear if the purchase includes the old Healthworks building.