Construction work has started on site to deliver parcel delivery firm DPD’s major distribution centre at a new £250 million business park in the North East, joint venture developer and investor Richardson Barberry announced today.

DPD has signed a 25-year lease on a 63,000 sq ft warehouse unit on an eight-acre site at Forrest Park, a joint venture between Durham County Council and local landowners the Forrest family, located next to Junction 59 of the A1(M) at Newton Aycliffe, Durham.

The new hub is expected to safeguard 125 jobs for County Durham and generate up to another 250 jobs as part of the new built-to-suit DPD building at Forrest Park. Yorkshire-based main contractor Caddick Construction has been appointed by Richardson Barberry and work has now started on site.

A ground-breaking ceremony was staged to mark the start of work on the site. Those attending included Councillor Andrew Husband, leader of Durham County Council, Jon Robinson, director at Richardson Barberry, Greg Kirby, project manager at Richardson Barberry, Jamie Anderson of DPD, Jason Forrest, representative of the Forrest Family, Christian Pape, business property director, Durham County Council, Mark Lee, strategic facilities manager, Durham County Council, Steve Ford, director of Caddick Construction, Steve Bell, operations director at Caddick, Michael Dennison, project manager at Caddick and Jake Clifton, of Aecom.

Richardson Barberry secured reserve matters planning consent for the state-of-the-art Grade-A building which will be built with sustainability in mind to BREEAM “Excellent” standards.

Jon Robinson, development director for Barberry, said: “This is a groundbreaking moment for the North East, Forrest Park, DPD and Richardson Barberry where development work has now started on site, developing DPD’s new regional distribution hub and delivering economic growth and new jobs for the region. This is the second deal at Forrest Park and it’s fantastic to see the park continue to take shape. It has been a pleasure working with the Caddick team and we are making great progress and on track for practical completion of our new DPD facility in the summer of 2026.

“Our major pre-let deal with DPD – an internationally recognised occupier – demonstrates the quality of our development at Forrest Park and has enabled us to open up the site and create additional estate infrastructure and development-ready plateaus for occupiers to fast-track growth.

“The site’s connectivity and proximity to the motorway junction, nearby demographic and availability of labour has proved to be a major attraction to potential occupiers who have shown interest in Forrest Park and we hope to share information relating to our next occupier transaction soon.  We can deliver building opportunities on both freehold and leasehold terms from 30,000 sq ft up to one million sq ft. Newton Aycliffe is a highly attractive location for a range of major businesses due to its access to a skilled labour demographic and it is testament to the quality of Forrest Park that we have agreed pre-let terms with such a major occupier as DPD.”

Louise Ferguson, head of property for DPD Group UK Ltd, said: “Forrest Park is a key location for us and it is exciting to see construction work start on site. Our new purpose-built distribution centre will enable us to expand our team to meet the growing demand locally and provide the best possible service to the area.

“The new facility is part of the ongoing investment in our infrastructure as we continue to modify and expand our nationwide network of over 80 regional sorting centres to ensure we have the capacity and the speed required to run a premium nationwide, seven day a week, delivery service. We are very much looking forward to working with Richardson Barberry on this project.”

Cllr Andrew Husband, leader of Durham County Council, said: “We are delighted to see work starting at the multi-million-pound Forrest Park, which is set to be a major employer in the region, creating more than 3,000 jobs. DPD is a leading international organisation, and we are pleased to know that this 25-year-lease will safeguard 125 jobs in our county and provide a huge boost to the local economy.

“A lot of planning and hard work has gone into this development, so it’s exciting to see the first steps of the project taking place. We’d like to thank all our partners for their continued dedication and support.”

Paul Dodsworth, Caddick Construction Group’s managing director, said: “We’re seeing significant investments in the industrial and logistics sector as our project pipeline continues to grow across the North East, and key to this is our appointment by Richardson Barberry to deliver this phase of Forrest Park. Our role in the expansion of the Durham business park also includes Caddick Civil Engineering, becoming the biggest contract to be delivered by our specialist civils business since launching in the North East region.

“To help us achieve the highest standards in construction we’re working with a network of excellent regional supply chain partners, not only to provide a high-quality and efficient build but to fuel the regional economy.”

Richardson Barberry has secured detailed planning consent for a development of eight warehouse units at Forrest Park with £14 million already invested on preparing the site for development. Durham County Council approved the company’s plans for the first phase development of 830,500 sq ft of warehouse/logistics space on 42-acres of the 116-acre site at Forrest Park.

Forrest Park (Newton Aycliffe) Limited, a joint venture between Durham County Council and local landowners the Forrest family, signed a development agreement with Richardson Barberry. Over the next 10 years the park could provide up to 1.8 million sq ft of industrial space and create more than 3,000 jobs, boosting County Durham’s economy by almost half a billion pounds.

Overall, the development will extend Aycliffe Business Park to become the largest in the North East and will accommodate a range of business, industrial, warehouse and trade units, roadside restaurants and retail space next to the A1(M). A roadside retail development by Euro Garages, including a petrol filling station, a convenience store and a KFC drive-thru restaurant, has already been built on the first plot at the site.

As part of Geopost, DPD UK has a Net Zero target of 2040, which is fully validated by the Science Based Targets initiative (SBTi). DPD UK recently confirmed that the UK operation is on track with the trajectory required to meet the group target.