A STALLED industrial park development on the outskirts of Derby is set to come back to life with a £45 million distribution centre that could create hundreds of jobs.
Goodman International, the developer behind Derby Commercial Park, has applied to Derby City Council for permission to build the 632,000 sq ft warehouse unit on the site, off Raynesway, for Kuehne and Nagel Drinksflow Logistics.
The firm, which is one of the world's largest logistics companies, will use the building to carry out a contract it has with brewer Heineken.
The warehouse would have 100 loading docks, parking for 164 lorries and a vehicle maintenance unit. There would also be a three-storey office for admin staff and parking for 268 cars.
At 632,000 sq ft, the size of the warehouse is significant – although not as big as the recently-opened 900,000 sq ft Marks and Spencer hub at Castle Donington.
In a statement, Goodman said: "We can confirm that a planning application has been submitted for a 632,285 sq ft distribution building on behalf of Kuehne and Nagel Drinksflow Logistics and Heineken. The cost of the project is £45 million."
Goodman said it would be in a position to reveal more information about the project, including job numbers, in the coming weeks.
The developer already has outline planning permission for a 1.2 million sq ft distribution hub on the same plot. But so far it has been unable to secure a tenant for that development, called Unit L.
Now, interest has been rekindled in the site with the potential arrival of Kuehne and Nagel – albeit for a warehouse half the size.
Kuehne and Nagel was founded in Germany more than 120 years ago. Today, it has more than 1,000 offices in over 100 countries, with more 63,000 employees.
Derby Commercial Park was officially launched in November 2010.
But since then nothing has been built on the 140-acre plot, part of which used to belong to the former Celanese Acetate works.
The latest unit would be built on former Celanese land within the industrial park called Plot M – north of the River Derwent.
Derby business leaders have welcomed the fact that something is finally starting to happen at Derby Commercial Park which, at full capacity, would provide jobs for as many as 3,000 people.
John Forkin, managing director of Marketing Derby, said: "This is very welcome news. I'd always believed that, due to its location and excellent transport links, tenants would eventually be found for Derby Commercial Park.
"Goodman have been marketing this site very aggressively and it's good to see that such a major player may be on the way to Derby."
George Cowcher, chief executive of Derbyshire and Nottinghamshire Chamber of Commerce, said: "It's good to see some movement on this scheme, which has the potential to create hundreds of new jobs in Derby and could leverage even more investment into the city.
"Recent business surveys, including our own research, have all pointed to an upturn in the local economy, with the construction sector in particular showing signs of improved confidence.
"The fact that schemes like this are starting to move forward is a clear indication that the economy has turned a corner."
To date, Goodman has invested about £175 million in the scheme – installing infrastructure, including a link with Raynesway.
The park already has planning permission for two car showrooms fronting the site and five industrial buildings measuring between 29,000 sq ft and 171,000 sq ft.
Goodman is currently involved in another major warehousing development planned for Derbyshire.
The firm has partnered with Shepherd Group to deliver a massive rail freight depot on 619 acres of land between Etwall and Egginton, on behalf of the landowner, Severn Trent.
The plans involve creating five million sq ft of manufacturing and distribution space. Derby City Council is due to make a decision on Goodman's application at Derby Commercial Park next month.
