Center Parcs, the leisure resort company, is planning a £400 million holiday village in Scotland as it continues to see significant demand for domestic short breaks.

A site has been identified three miles north of Hawick in the Scottish Borders. Proposals are at an early stage and Center Parcs intends to submit a planning application for 700 lodges in 2025.

The company has six holiday villages in England and Ireland but, despite once being owned by Scottish & Newcastle Breweries, it has never had one in Scotland.

The new site will offer a range of indoor and outdoor activities, shops, bars, restaurants, Forest Spa and and indoor water park.

Center Parcs plans an extensive programme of afforestation, cultivating a new woodland and delivering significant biodiversity. Currently, the site is predominantly open grassland with some woodland areas.

At a presentation today, Colin McKinlay, chief executive of Center Parcs, said: “This is a tremendously exciting project and offers the opportunity to transform leisure and tourism in the Scottish Borders.

“Center Parcs is an exceptionally popular destination for families in the UK and Ireland and there is robust demand to support a seventh village.

“Throughout our history, we have demonstrated that a Center Parcs village provides significant economic benefits locally, regionally and nationally.

“Many Scottish families already visit Center Parcs villages in England, and this village will offer the chance for people to enjoy their holidays closer to home, which in turn will benefit the local economy.”

He said the proposal was at an early stage. The construction phase will require 750-800 workers and local contractors will be used where possible.

Once operational, the village is expected to create around 1,200 permanent non-seasonal jobs.

The site lies to the east of the A7 trunk road between Hawick and Selkirk on land owned by the Buccleuch Group, which has signed an option agreement with Center Parcs.

The agreement covers approximately 1,000 acres of land, comprising open grassland and some woodland. It is expected that development on the site will extend to 400 acres.

Benny Higgins, executive chairman of the Buccleuch Group, said: “This project promises to have an outstandingly positive impact on tourism and leisure in the Scottish Borders and we are delighted to have signed an option agreement that will enable Center Parcs to take the next steps towards fulfilling its ambitions.

The announcement came as the media were invited to view the Lost Shore windsurfing resort, west of Edinburgh, ahead of its official opening on 11 November.

Located in a former quarry in Ratho the £60m attraction boasts Europe’s largest and most advanced wave pool, positioning Scotland as a new global hub for adventure tourism.

It is the largest investment in Scottish sporting infrastructure since the 2014 Commonwealth Games in Glasgow and is expected to welcome over 160,000 visitors annually, create more than 130 jobs, and contribute £11 million to the local economy each year.