DISCOUNT store Home Bargains has signed a 15-year lease for the former Madisons site, at Olive Bank, Musselburgh, and expects to open early next year.

The retail chain expects to create up to 40 jobs when it takes over a new shop unit which is being built on the site of the former pub and nightclub.

Developers Kilmac have invested £2.5m in the new store and surrounding car park.

Home Bargains said it had signed a deal with would lease the 12,500 square ft of retail space for £13.50 per square ft - equating to just over £2.5m over the 15 years.

Work on the new store began this month and it will sit alongside an existing Aldi and Iceland.

It is the latest boost to the retail park, which has seen a dramatic increase in new tenants since IME Property took over marketing the development earlier this year.

IME was appointed by Perth-based Kilmac in March to market the development.

Local security business A&E Controls secured a lease on unit 1 in June, while unit 3 is occupied by Dance Evolution.

Three units remain vacant although a planning application has been submitted to East Lothian Council asking to turn one of them into a cross-fit gym.

The Home Bargains deal at Olive Bank Retail Park follows hard on the heels of recent figures suggesting a boom in retail park shopping.

In August, footfall at Scottish retail parks jumped eight per cent.

Iain Mercer, IME managing director, believes Olive Bank provides retailers looking for affordable space on the east side of Edinburgh with a viable alternative to the giant Fort Kinnaird retail park.

He said: “We believe there is genuine potential for Olive Bank to become a valuable addition to the current retail offering.

“Fort Kinnaird is close by, has seen growth and enjoyed a real upturn in fortunes in the last few years but that comes at a cost.

"What we are offering at Olive Bank is a new and exciting opportunity for secondary retailers."

Blair Morrison, acquisitions director at Kilmac Properties, also believes Olive Bank could benefit from its closeness to Fort Kinnaird.

He said: “We are seeing a shift in retail demand to the east of Edinburgh and to retail parks in general and are confident that will be reflected in occupiers spotting an opportunity at Olive Bank Retail Park.

“The addition of Home Bargains to an already strong line-up of occupiers demonstrate a real confidence in the location and we are excited by the potential for this location.”