Volkswagen is building a new £25million headquarters at Tongwell.
The car giant’s financial services sector will take control of the 100,000 sq ft office development.
Demolition of the existing warehouse on the site is already underway. It will be replaced by a brand new high-specification building.
Planning permission was secured for the site in October 2012 and the project is due to be completed in 2014.
Working with architect’s PHP, the development will create a striking building, combining sleek curves intersected by straight lines and planes.
The scheme will provide 100,000 sq ft over four floors and, in addition to office space, will include a staff car park, restaurant and coffee shop for staff, a large area of external green space, flexible working spaces, a theatre style conference centre and bike storage.
It marks a further significant investment by developers UK & European in Milton Keynes, having previously developed the 500,000 sq ft River Island distribution facility at Magna Park during 2010.
Head of UK & European Investments at UK & European, Barnaby Kelham, said: “We have owned this site for many years and are delighted to now welcome Volkswagen Financial Services to Delaware Drive.
“This important regional redevelopment scheme will provide high quality office space in what will become a significant landmark building in Milton Keynes. At completion this Grade A, BREEAM ‘Excellent’ office building will be a complementary addition to our existing UK portfolio and our long term investment strategy.
“UK & European has an established track record of delivering high quality, sustainable development and we look forward to working with VWFS over the coming months in the delivery of their new UK Headquarters.”
Managing Director at VWFS UK, Lisa Stacey, added: “Our move to the new purpose built site on Delaware Drive marks the commitment of Volkswagen Financial Services to Milton Keynes.
“The new building will allow VWFS to remain close to its sister company (Volkswagen Group) and provide enough space for the company to grow incrementally over the next 20 years.
“This would secure the future of VWFS as a major contributor to the economy of Milton Keynes.”