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Ivygrove Developments has bought a derelict eight-acre site in Derby and has plans to construct 12 industrial buildings on it.

The Derby company acquired the site, which is near the Alvaston end of Raynesway, from Telereal Trillium, which had acquired it from the government.

Ivygrove proposes to develop 12 industrial buildings covering 140,000 sq ft, ranging in size between 5,000 and 50,000 sq ft.

The site, which has remained undeveloped for more than 20 years, was formerly used as a pre-fabricated camp site for homeless people and was used by the military in the Second World War.

Selling agent CB Richard Ellis has had the site on the market for more than a year.

Contracts have been exchanged conditionally and will be completed following "satisfactory planning consent" being obtained.

Ivygrove is to submit plans to the city council shortly and hopes to start construction by July.

Chairman John Blount said negotiations have taken place with several companies over the past few months who are interested in moving to the site.

Two companies, one in the Nottingham area, have reserved plots of about 8,000 sq ft and 12,000 sq ft of workshops and offices. Another two businesses require units in excess of 20,000 sq ft.

"I'm delighted with this response in the present economic climate but believe that Derby in general has a lot to offer, with potential for massive growth in the industrial and manufacturing areas," Blount added.

Stephen Salloway of estate agency Salloway acted on behalf of Ivygrove.

It follows the developer completing infrastructure works and starting constructing on small and medium-sized industrial units at a site close to the city centre.

Ivygrove bought the former Sawley Packaging site from Rolls-Royce in 2009 and now plans to transform it with 20 buildings at a cost of £2.5m.