Prime Point Durham will comprise two warehouse units of 36,000 sq ft and 40,000 sq ft at Aycliffe Business Park.
Located on Carlbury Road in Newton Aycliffe, the buildings will include ancillary office space, eaves heights of up to 12 metres and 35 car parking spaces, including EV charging points.
The units have been designed to be occupied separately or combined, targeting regional and local SMEs alongside the wider industrial and logistics market.
The project is being supported by the North East Mayoral Strategic Authority via a seven-figure viability gap incentive and funded in part through a loan from FW Capital under the North East Commercial Property Investment Fund.
The inward investment scheme is intended to support local economic growth and job creation by bringing new industrial space to the market.
Jonathan Simpson, director at joint letting agent Connect Property North East, said: “We are delighted that our client has commenced construction.
“The two buildings are specifically designed to be both split and occupied as one in order to appeal to both regional/local SMEs as well as the wider industrial and logistics market.
“It is fantastic to see the buildings heading towards completion for the end of this year, with several viewings and expressions of early interest already received.”
Joint letting agent Nick Atkinson of HTA said: “Aycliffe Business Park is a very popular location and new units of this size are very scarce throughout Durham and the wider region.
“New buildings offer occupiers improved efficiencies, lower maintenance costs, and the extra height equates to larger volumes for storage.”
Prime Group commercial director Imran Younus said: “The Prime Group has a solid track record in industrial development, and these two buildings will add fresh industrial stock with a highly desirable specification to the North East market.”
