The former Rolls-Royce car park in Dunstall Park Road will help create up to 500 jobs, once completed.
John Blount, Chairman of Ivygrove, said: "It was obvious to us that the site was ideal for our industrial units. We agreed terms to buy it soon after it came to the market."
Stephen Salloway, Managing Director at Salloway Property Consultants the agents for the site, said: "The proposal is to build up to 20 units totalling 80,000 sq ft and ranging from 3,000 sq ft to 15,000 sq ft.
"The timing is excellent as we are seeing increasing levels of demand across the board for small to medium-sized industrial units. Dunstall Park fits the bill perfectly.
"We believe there is a good appetite for the Ivygrove product in this size range and location and I anticipate good levels of early interest from pent-up demand. Indeed, we already have two serious enquiries from major organisations. It is great news for the local economy and fits well with the concepts of the Industrial Strategy."