Property investment company Rockspring, which owns the Union Street buildings, said it is “seeking a new and viable approach to the redevelopment of the site” and that its plans include “more attractive and active frontages… to increase the vibrancy of the area”.
The company wants to “dramatically improve the external facade” of the building.
London-based Rockspring had previously put forward plans to build a 17-storey block of flats at the site of the former Granite Mile shop.
However, the city council refused to back the proposals after a study showed the project “would not be good for the council taxpayer”.
Since then the firm said it has been in discussions with Aberdeen City Council regarding options since the collapse of BHS and has now submitted a proposal of application notice to transform the two sites into a “mixed use, office-led” development.
The new development would include retail on Union Street, plus cafes and restaurants on Market Street and The Green, and office space.
Shaun Hose, director of Rockspring, said: “The location and scale of this site presents major regeneration opportunities for Aberdeen city centre.
“Our aim is to create an innovative architectural building and greatly improve the surroundings.
“The approach to design and development will be fundamental in terms of creating a successful piece of urban design, sadly lacking in the current building which is no longer fit for purpose.”
A spokeswoman for the firm said the current building “has been deteriorating for some time” and is not suited for current “shopping trends”.
Mr Hose added: “This will transform the current eyesore into a more attractive and contemporary focal point for the Merchant Quarter, in keeping with the improvements which have been made to The Green in recent years.
“Working closely with the council and in consultation with local stakeholders and the wider public, we want to come up with a proposal that fits with the City Centre Masterplan but also responds to market demand for smaller, more diverse retail and leisure outlets and office space.
“Ultimately, it’s about offering a long-term, sustainable solution for the site that enhances the vitality of the east end of Union Street.”
The firm is planning a “comprehensive consultation exercise” in November to gather public views.