Development group Barberry has purchased land on the Aston Manufacturing Hub to build new industrial space.
The Stourbridge-based group will speculatively build around 60,000 sq ft of space on a 2.9-acre site at the hub north of Birmingham city centre after being selected by land owners Birmingham City Council and the Homes and Communities Agency.
Construction is due to start by the end of this year and be completed in autumn 2018.
The new property will be the second speculative development at the hub following the 94,500 sq ft Apollo building which completed construction earlier this year.
Current tenants at the hub include HydraForce Hydraulics and tool manufacturer Guhring while the site hit the headlines earlier this year when an unexploded Second World War bomb was found, bringing the city's road network to a halt.
Jonathan Robinson, development director at Barberry, said: "We are delighted to have been chosen by the council and Homes and Communities Agency as the preferred purchaser of this prime, well-located Birmingham site.
"Our proposed development complements several other schemes that Barberry are delivering within the region.
"We believe our investment will generate strong demand from both regional, national and global manufacturing, light industrial and research and development businesses, ultimately generating jobs, economic growth and regeneration for the region."
Charles Spicer, industrial director at Savills which advised the seller, said: "Barberry's investment and confidence in the hub is another major milestone in the progression of the scheme and highlights its growing maturity."
Coun John Clancy, leader of Birmingham City Council, added: "I am delighted that Barberry has decided to make this significant investment which demonstrates continued strength and confidence in the city's industrial sector.
"We're working closely with partners to create inclusive growth by bringing high-quality jobs and opportunities to the Advanced Manufacturing Hub."