WORK has started on the first phase of one of the biggest industrial property developments in Oxford for more than a decade.

Network Oxford, covering seven acres in Sandy Lane West, Cowley, will house a depot for bus operator Stagecoach and car-parts supplier Nedschroef.

They are the first two tenants lined up for the redevelopment, due to be finished early next year.

Stagecoach will take an acre at the rear of the scheme to extend its existing depot. And Nedschroef, which supplies small parts such as screws, rubber and plastic items to the Mini plant in Cowley, is moving from its current premises on the Oxford Business Park North.

It is leasing a 30,000 sq ft warehouse building, creating up to ten more jobs to add to its existing 40-strong workforce.

Managing director David Hughes said: "The new premises will be bigger and we are looking to expand."

The second phase will involve smaller units designed for occupiers such as builders' merchants, who need a trade counter operation.

Jon Silversides, of developer Naus Albion, said: "Network Oxford will rejuvenate a redundant commercial site and breathe new life into this location which adjoins the Oxford ring road.

"I believe that we have not only justified our belief in the site but also sent out a positive message to the market where we continue to see occupier demand despite the overall negativity being portrayed."