WORK has started on a £30m development on the outskirts of Southampton which its backers claim will create 750 jobs for the area.

The South Central development at Test Lane, Nursling, is the first speculative new industrial development close to the Port of Southampton in a decade.

It will create three huge new industrial units – designed for storage and distribution use.

Southampton commercial property specialists Lambert Smith Hampton, the joint letting agents with JLL, say the scale of the project is a big vote of confidence on the region’s economy.

The project has full detailed planning consent and is on track to be completed in the first quarter of 2018, say the developers.

Engineers have begun road improvement works associated with the 11-acre development, including the widening of Test Lane to improve access to the site from Junction 1 of the M271 at Nursling.

The three units measure 39,075sqft, 49,965sqft and 116,895sqft and cover a total of 16.13 acres – the equivalent of six football pitches. Each will be around 11 metres (36ft) high.

The agents say the site’s strategic location, within two miles of Dock Gate 20 in the port and just off the M27 and M271, have resulted in a high level of interest from potential occupiers.

Adrian Whitfield of Lambert Smith Hampton, said: “We have already seen significant interest in the three units at South Central from several businesses whose work relates to the Port of Southampton, and also from companies in the parcel distribution, storage and manufacturing sectors.

“A speculative development of this scale in such a strategically important location is a huge show of confidence in the region, particularly in Southampton’s position as a key hub for international trade.

“It reflects the mood that we’re seeing across the South, where we are seeing significant growth and resilience in the commercial property investment market. We are very proud to be involved in South Central, a development which brings with it positive investment in infrastructure, hundreds of jobs and wider economic benefits to the region.”

The development is being carried out by specialist UK logistics and industrial property specialist Peel Logistics Property.

Its funding partner is Rockspring Property Investment Managers LLP, which has €7.9bn of real estate assets under management in 13 countries across Europe.

Neil Dickinson, chief operating officer at Peel Logistics, said: “This is an opportunity which will bring a huge amount of investment to the region while helping to satisfy the high level of demand for large commercial property units in the Southampton area.”

Chief executive of Hampshire Chamber of Commerce welcomed the news.

“The chamber has been campaigning for this development – there is a massive shortage of warehouse space on the M27 corridor.”

Mr Dunne said that the chamber had backed a similar larger scheme at nearby Adanac Park alongside the M271 which test Valley Borough Council had rejected.

“I am glad to see that Southampton City Council has grasped the nettle and I welcome this attitude.”