AM has been chosen as preferred partner for the redevlopment of Edinburgh’s prime shopping street.

The Dutch developer, which is in talks to sell its commercial arm to Morgan Stanley Real Estate Fund, beat six other contenders to represent the commercial sector of the updated Edinburgh City Centre Action Plan on Princes Street. The street spans three-quarters of a mile and its development is part of the plan to revitalise the city.

The decision was made by Edinburgh City Centre Management, City of Edinburgh Council, Scottish Enterprise Edinburgh and Lothian and Edinburgh World Heritage Trust.

AM will come back with firm proposals for the retail-led redevelopment in the next six to 12 months. It is expected that the redevelopment will take place in several phases.

The company was chosen as a result of its experience in redeveloping city centres around Europe. It owns more than 29m sq ft (2.7m sq m) of property across 12 European countries.