JOHN O’Groats is set to be transformed as developers seek investment to turn a masterplan for the northern village into reality.

Agents have been engaged to attract big businesses to take a stake in the “iconic” location, with those behind the push citing major tourism potential.

The Caithness community is famed as the most north-easterly on the UK mainland and has long been a feature in charity challenges, with holidaymakers also stopping to have their pictures taken with the famous white-and-black sign.

However, it has also been named the most dismal place in Scotland, winning the Plook on the Plinth trophy from architecture magazine Urban Realm in 2010. Organisers criticised its “sprawl” of retail and business parks and housing developments.

Two years ago Heritage GB, which operates UK visitor attractions, and luxury leisure and travel firm Natural Retreats won approval from Highland Council for planning in principle for a six-zone masterplan including new holiday accommodation, artisan units, housing and harbour space.

They have now appointed agents to find the developers and investors needed to bring the plan to life.

With travellers on the North Coast 500 route boosting traffic to the town, agents Strutt & Parker and Shepherd Chartered Surveyors say now is the time to realise the “ambitious” proposals.

In a joint statement, the companies said work already undertaken by Heritage GB and Natural Retreats had transformed the area.

This includes a £7.5 million redevelopment of the listed John O’Groats Inn. Once derelict, it has been reworked into a 19-unit hotel with self-catering lodges.

The octagonal tower of the landmark building is a replica of the original John De Groots house, which was built to accommodate a feast celebrating the arrival of Jan De Groot in Caithness.

The Dutchman was given the right to operate a ferry franchise to Orkney in 1496 following the island’s acquisition from Norway.

Sandy Rennie of Shepherd Chartered Surveyors said: “Expressions of interest are sought from third-party investors including developers, operators and any potential tenants.

“This is a unique opportunity to invest in an iconic location within the UK and capitalise on the tourist trade within Scotland, which has gone from strength to strength, particularly the success of the North Coast 500 route, which has rapidly established itself as one of the most scenic driving routes in the world.”

While outline planning consent has been given, full permission will have to be sought when detailed plans emerge.