EAST Hampshire District councillors, contractors and representatives from the Enterprise M3 LEP gathered at the OSU site in Liphook last Thursday to “break the ground” officially at the Ordnance Business Park.

The former Ordnance Supply Unit (OSU) site, in Midhurst Road, will be home to three new business premises, including two new office blocks and three light industrial units, due to be completed in January 2018.

The plans for the project are being funded through a £2m investment by East Hampshire District Council and a £1.6m grant from the M3 Local Enterprise Partnership.

The redevelopment of a former military site, the first of its kind for EHDC, aims to create jobs, business space and boost the local economy, as well as provide a rental income to the district council, which it says, will be re-invested through apprenticeships and business support schemes.

EHDC is determined to become one of the country’s most business-friendly councils and has launched the project as part of its Invest for Growth Initiative.

Glynis Watts, EHDC portfolio holder for economic development, said: “I am delighted to see work is under way on this site, and we all look forward to the fantastic new buildings this project will provide.

“These premises will be perfect for local businesses looking to expand, for start-ups or to attract new businesses into the area.

“EHDC intends to be the most business-friendly council in the country and this project is another indication of that ambition.

“Once occupied, the buildings will generate rental income which will be re-invested in local economic development projects and contribute to the council’s plans to be financially independent.”

Enterprise M3 LEP chairman Geoff French said: “We are pleased to see this project take off and look forward to the economic benefits it will deliver in terms of addressing the increasing demand for high quality business premises in the area.”

After the ceremony EHDC chief executive Sandy Hopkins, and newly elected leader Richard Millard hosted an afternoon tea party at Old Thorns Country Hotel.

Mrs Hopkins called it a “proud day” for the council, which was born out of its strategy to take a commercial and unique approach to run a local authority and which it wants to keep pursuing.

She added with the right management approach and by working with local businesses, the project would generate an income to be redirected into the local economy. Economic growth involved having fresh ideas, she said.

Mr Millard told The Herald: “This is a very important day. The council’s approach is working and will benefit residents and businesses.

“This is very much the beginning, with the OSU project being the first.

“The council wants to pursue further opportunities and partnerships and develop relationships. The private sector is fundamental – this is the way forward to move into the future and it is an exciting way forward.”

The Department for Business, Energy and Industrial Strategy is another funding partner. Delivery partners include PDP Architecture, Scott White and Hookins, TNG Consulting Engineers and Amiri Construction.

The private sector support involves Taylor Wimpey (Southern Counties), Business East Hants partnership and two commercial agents – Wadham and Isherwood and Holloway Iliffe and Mitchell.

Director Stuart Mitchell said: “Plans for the Ordnance Business Park have been well received locally and there is plenty of interest in both the office and industrial units currently under construction.

“With very little speculative development across East Hampshire, this mixed use development is a welcome addition to the commercial market.”

The plans for the project, as part of the district council’s innovative Invest for Growth project, received planning permission in September last year.

In total, the scheme will comprise up to 2,600 square yards of new commercial floor space with two office buildings and three industrial units and would create up to 140 new jobs, generating a gross added value of £5,467,000, which to the local economy would be up to £3,833,734.  

The two office blocks will be creating up to 1,900 sq yards of internal area eligible for B1A use, and the three industrial units up to 720 sq yards for B1C use.

EHDC bought the last undeveloped part of the OSU site in March 2016, after Taylor Wimpey agreed to sell the commercial land adjacent to the Maple Park housing development in Midhurst Road to the district council in late 2015.

The developers also agreed to provide a new access for the premises.

The site has had a long planning history, which included a 60-bed nursing home proposal by the Highwood Group, which the parish council strongly objected to in 2015.