Developer Norseman Investments believes the scheme would help Derby become one of the most desirable places for businesses outside London, attracting organisations which previously might have overlooked the city.
The Turnditch developer plans to transform a three-acre site opposite the Westfield centre, between Siddals Road and Traffic Street, into the city's largest-ever office development.
Norseman Investments hopes to start work on the site in just under a year. The development would comprise six buildings, between six and nine storeys high, nestled around a piazza with underground parking and landscaped gardens.
The site is owned by car dealership Speeds Limited, which has agreed to sell once planning permission has been granted.
Derby is already undergoing a £2bn regeneration project, being spearheaded by urban regeneration company Derby Cityscape, which has already seen the city's fortunes boosted with schemes like the £340m redevelopment of Westfield.
According to Cityscape chief executive, John Cadwallader, the Norseman development is just what Derby needs to ensure its economy continues to grow despite the credit crunch. He said: “News of this key site being acquired by Norseman is excellent.
“Derby Cityscape identified this site in the masterplan process as being vital in delivering the scale of office development that Derby needs to attract head-office type uses to the city.
“Having a private sector developer such as Norseman take on the scheme and bring it forward to development has always been our ultimate aim.”
While cities up and down the country are feeling the effects of the credit crunch, business experts believe that, by putting the wheels in motion now, Derby would be in an excellent position to attract investment once the development was complete in three or four years.
John Forkin is head of Marketing Derby, an organisation set up to promote the city.
He said: “The news is a major boost in confidence, particularly in the current market climate, and shows that Derby will be the hotspot for such important developments in the next five to 10 years.
“This shows we are developing the city centre as a prestigious office location for business following the success of Pride Park.”
He added that the new offices were just the type of large-scale development currently lacking in Derby and would help to attract organisations and companies which had overlooked the city up until now.
One example is Government departments, which are increasingly relocating to cities outside London in a bid to cut costs.
Mr Forkin said: “The development is exactly the type of scheme which is easier to sell as a location for Government relocation out of London, with its close proximity to the refurbished rail station and the new bus station.
“I don't think Derby has had its fair share of Government civil service jobs and we have a low percentage of people working in the public sector compared with other cities in the region.”
He added that it was highly likely that most of the jobs would go to people from Derby and the surrounding area.
“The majority of the jobs would go to local people. What often happens when you get relocations is that it is the position that moves, not the people,” he said.
The developer is confident that the offices would be filled easily and already has an agent in London and another in Derby marketing the building nationally and internationally.
Norseman Investments managing director Duncan Ashby said: “Derby already has an international reputation as a home to major corporates such as Egg, Toyota, Rolls-Royce and Bombardier.
“This development would create a major new destination in the city centre and allow Derby to compete nationally for further corporate and public sector occupiers and thereby generate additional employment opportunities.
“The plans have been sympathetically brought together by our architects, TP Bennett, who have a vast experience in creating exciting, sustainable and successful schemes that sit comfortably in their environment.”
International property advisers Colliers CRE have been given the job of marketing the site – a task which director Mark Taylor believes will be made easier by the design of the building.
He said: “We are delighted to be involved in this development, having already worked on many high-profile buildings in Derby, including those occupied by Rolls-Royce and Egg.
“The development has been designed to be totally flexible to market requirements.
“It will therefore present an attractive and viable option to a major international and national business or organisation looking to relocate as well as a number of smaller businesses.”
It is hoped that, by attracting businesses into the city centre, trade in areas such as entertainment, shopping and eating out would also benefit.
Mr Forkin said: “The city centre has been suffering from under-investment for a long time.
“ The Westfield investment has really helped and, instead of just sitting back, we want to use that investment as a catalyst.
“If people are working in the city, they are more likely to go out at lunch time and after work and make use of facilities such as the cinema, restaurant and shops, bringing more day trade and more investment.”
A planning application for the development is due to be submitted in late September and, if approved, work would start in early summer 2009 and take two years to complete.
And with Derby's economy growing faster than any other city in England over the last decade, it is hoped the investment would see this trend continue.
Derby City Council leader Hilary Jones said: “This exciting and innovative major development is excellent news for Derby.
“This will accelerate and spearhead the regeneration of the Castleward area.”
Article courtesy of Derby Evening Telegraph