A NEW development has been given the go-ahead in a £12 million scheme in Redditch - only the third new industrial development in the town in the last five years.

Planning consent was given for 110,000 sq ft of manufacturing, distribution and light engineering units on a 5.5-acre site on Shawbank Road, in Lakeside.

Demolition of the Dana Automotive factory on site has cleared the way for the redevelopment, which is a joint venture between Midlands-based Oakham Developments and Abacus Developments, the property investment and development arm of the Sir Robert McAlpine Group.

The scheme will be built in two phases.

It is a speculative build of 53,750 sq ft, offering units ranging from 6,000-12,250 sq ft, which will be ready early next year.

The second phase, on the remaining three acres at the rear, is expected to be built as a pre-let or pre-sale for one major occupier.

Kenny Allan, of Birmingham letting agents CBRE, said: "There has been great interest from a wide spectrum of occupiers, from manufacturing and distribution to high-tech companies,"

"This is because there is hardly any new stock in Redditch, and because it is the only site coming forward in the next 18 months to two years due to lack of supply of land.

"There have been only two schemes built in the past five years, so we will provide a rare opportunity to buy freehold."