Pictured above: Twin brothers Nicholas Blount (left), director of Kinsey (Midlands) and Richard Blount, director of Ivygrove, at the site with plans.

A Derby developer is planning to transform an old industrial site in the city and build speculative units, despite the recession.

Ivygrove Developments, of Racecourse Industrial Park, Mansfield Road, is hoping to build 20 individual industrial units for sale or let on the site of the old Sawley Packaging factory on Nottingham Road.

The four-acre site, just below Cemetery Hill, and less then a mile from the city centre, is between Masons Place, itself a redevelopment of the former Joseph Mason Paint works, and secure printers BemroseBooth.

Ivygrove bought the site in May from Rolls-Royce, which formerly owned Sawley Packaging. The purchase, and demolition of buildings which started two months ago, together cost more than £1m.

Buildings, dating back to the late 19th century, took up more than 100,000 sq ft. They started life as a lace mill for William Fletcher and later produced elastic webbing and then boots.

They were dominated by a 70,000 sq ft warehouse with a north light roof. This architectural feature, common to weaving sheds, had sawtooth roofs with glass facing the north so as to attract the light but not let in glare or heat, so reducing the need and cost of artificial lighting.

"Unfortunately, the existing buildings were beyond saving," said John Blount, Ivygrove's managing director.

"They were the wrong configuration for modern uses and were badly vandalised during the two years that the site lay empty."

Now, his company plans to create an industrial park of small and medium sized portal frame units, similar to those on Royal Scot Road, Pride Park, another Ivygrove development.

Ivygrove will submit a planning application to the city council next month. It hopes to start work on the two-year project in the new year, with the first units available in the summer.

Work would be done by Ivygrove's sister company Kinsey (Midlands). When completed, the site would consist of around 80,000 sq ft of units ranging from 5,000-20,000 sq ft. The buildings could accommodate more than 100 people.

Marc Ballard, senior surveyor of selling agents and property consultants, said: "Recent industrial sites in Derby have not catered for these sizes of units, and have been dominated with offices, car show rooms and large commercial premises, so Ivygrove's plans will be well received by potential occupiers."  

Ivygrove confirmed there is demand for small industrial units and it had already had inquiries from local companies, particularly those in Castle Ward which are looking to relocate to make way for Cityscape's project there.

"We are proud to be a Derby firm catering for the needs of local businesses," said John.

"Despite the recession we have the confidence to proceed because Derby has a solid and diverse industrial base.

"Empty property rates are putting off speculative development but we feel there is good demand for the type and size of units that we propose on Nottingham Road."

Tim Wolfe, of NatWest Commercial Banking in Derby, which has provided funding, said he was delighted to support Ivygrove in acquiring the former Sawley Packaging site which fitted in perfectly with the developer's core business.

"Their portfolio of rented industrial properties producing impressive rental income allows them to continue building even in the current economic climate," he said.