A DERBY firm is reaping the first rewards of a speculative development that has the potential to provide space for up to 250 staff.

The first occupiers have moved into Sawley Park, which represents an investment of £2.5 million for Ivygrove Developments.

Among the first businesses to take space at the Nottingham Road site are coal and smokeless fuel merchant Murfin's and Derby legal firm Flint Bishop.

Murfin's has relocated its storage depot from Nottingham Road, Chaddesden, in a deal with Lidl, which wants to build a supermarket.

Flint Bishop will use its units to store documents.

Sawley Park is one of the few speculative industrial developments in the region, built on land formerly occupied by Sawley Packaging.

This kind of scheme is rare because developers building units without signing up an occupier risk having to pay business rates on the property should it remain empty.

Ivygrove Developments, based at the Racecourse Industrial Park, in Mansfield Road, bought the former Sawley Packaging site from Rolls-Royce in 2009.

The four-acre site had been dominated by an 80,000 sq ft warehouse that had become a target for vandals. The 19th-century building was demolished to make way for about 20 light industrial units.

Four units have now been sold and one let to Murfin's, which started as a coal merchant and haulier in Uttoxeter Road, in 1850.

Ernie Murfin, whose ancestor Joe started the business, handed over the reins to son David in 1999.

Flint Bishop is buying two 3,500 sq ft units for storage, its policy being to keep original documents rather than using microfilm.

Two more units of the same size have been bought by a pension fund and will be available to let from March. Property consultant Stephen Salloway said: "It's a clear demonstration of Ivygrove's confidence in the Derby market.

"To build speculative developments, whether for lease or sale, involves risk, particularly in the current market, and I'm delighted that Ivygrove is reaping the rewards for its investment.

"Companies like to see what they're getting in appearance and size and this goes a long way in being adequate to meet customers' requirements."

Ivygrove chairman John Blount said: "The units are to a 21st century design and this, plus the central location, should hopefully attract more users."