The 435,750 sq ft Co-op distribution centre in Avonmouth has been given the go ahead by planners.
The £35m warehouse facility which will employ around 1,000 will be built by Gallan Group and Stoford and is set to be completed by early 2012.
AXA Real Estate is forward funding the scheme which was pre-let to Co-op on a 20-year lease at a rent of more than £2.1 million a year.
The distribution centre will serve more than 400 stores in Bristol, the South West and South Wales. It is part of the Co-operative Group’s reorganisation of its UK logistics following its acquisition of Somerfield in 2009.
The deal took 12 months to secure and involved detailed negotiations with key stakeholders including the Co-operative Group, the existing tenant Honda Motor Europe, and The Crown Estate Commissioners that own the 32.95-acre site.
Mark Leonard, The Co-operative Group’s regional head of logistics, said: “We are delighted the project has been given the green light and work can get underway on the distribution centre that will create jobs and be a major boost for the local economy.”
John Rogers of Drivers Jonas Deloitte acted on behalf of Gallan and Stoford for the investment sale.