Monaco-based entrepreneur John Scott who owns Scott Group, has bought Linga which lies off the west mainland of Shetland and reaches about 64 acres in size.
It is understood the island has been uninhabited since 1934.
A spokesperson for the company told Shetland News that “in keeping with the previous owner’s plans, [Scott] intends to develop the island to recreate the crofting land and restore two existing dwellings, and subject to appropriate planning permissions, adding a third new cottage at the south end of the island,” adding, “the project will use renewable energy and eco-friendly solutions.”
Linga was on the market with offers over £250,000.
The island, which lies closer to Norway than the Scottish mainland, comes with two derelict cottages, but with planning consent in place for a cluster of new buildings, as well as solar panels, a pier and a windmill.
The island can be accessed by boat, with the village of Walls some 500 metres away.
Mr Scott developed his family-run sawmilling business into one of the world’s leading pallet manufacturers which supplies markets across Europe.
He was just 18 when he took over the firm after his father died.
The entrepreneur already has links to Shetland as one of Scott Group’s sub-businesses – Scott Direct – provides industrial supplies such as safety equipment, PPE and tools to Gremista Industrial Estate in Lerwick on Shetland’s mainland.