Barwood Capital and Taurus Developments are to develop a 120,000 sq ft industrial space at New Lane Industrial Estate in Havant, Hampshire.
A planning application has been submitted to Havant borough council and the existing building will be demolished to deliver the scheme, which has been named Velocity.
Work will begin on the scheme when prelets are secured. The anticipated rent at the site will be £7.95 per sq ft.
Ed Henson, of Barwood Capital, commented: “This is a key development opportunity for our 2012 Fund and sits squarely within our investment strategy in seeking to deliver superior returns through the development process for our investors”.
CBRE and Colliers International are letting agents on the scheme.
