Construction is officially underway on a major new distribution centre for parcel delivery giant DPD, located within a landmark £250 million business park in the North East.

Developer and investor Richardson Barberry confirmed today that work has begun on the 63,000 sq ft, built-to-suit facility at Forrest Park, a joint venture project between Durham County Council and the Forrest family, who own the land. The new development is strategically positioned adjacent to Junction 59 of the A1(M) in Newton Aycliffe.

DPD has committed to a 25-year lease on the eight-acre site. The state-of-the-art logistics hub is expected to safeguard 125 existing jobs and potentially create up to 250 new positions, further boosting employment opportunities in County Durham.

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.”

Caddick Construction, a Yorkshire-based main contractor, has been appointed to deliver the project, with on-site work now underway. The launch was marked with a ground-breaking ceremony attended by local dignitaries, development stakeholders, and representatives from DPD and Caddick.

Attendees included:

• Councillor Andrew Husband, Leader, Durham County Council
• Jon Robinson and Greg Kirby, Richardson Barberry
• Jamie Anderson, DPD
• Jason Forrest, Forrest Family
• Christian Pape, Durham County Council
• Mark Lee, Strategic Facilities Manager, Durham County Council
• Steve Ford and Steve Bell, Caddick Construction
• Michael Dennison and Jake Clifton, Caddick and Aecom

The new distribution centre is being constructed to BREEAM “Excellent” sustainability standards, aligning with DPD UK’s environmental goals. As part of Geopost, DPD UK has committed to achieving Net Zero emissions by 2040, a target validated by the Science Based Targets initiative (SBTi).

Richardson Barberry has also secured detailed planning consent for the first phase of the broader development at Forrest Park, covering 830,500 sq ft of logistics and warehouse space across 42 acres. To date, £14 million has been invested in site preparation. When fully completed, Forrest Park could deliver up to 1.8 million sq ft of industrial space and support the creation of over 3,000 jobs, potentially injecting nearly £500 million into the local economy.

The overall vision will see Forrest Park become a major extension to Aycliffe Business Park, transforming it into the largest business park in the North East. The site will feature a mix of industrial, commercial, and retail units, along with roadside amenities. A Euro Garages development—including a petrol station, convenience store, and KFC drive-thru—is already operational on site.