A £10m investment into the Mitel site in Caldicot looks set to bring hundreds of new jobs to the area.

Commercial property developer Robert Hitchins Limited has recently confirmed its acquisition of the 17-acre property and now plan to transform the site into a mixed-use, multi-let development.

Newly named Castlegate Business Park, the new owners are promoting their easy access to the M4 and M5 motorways, and the two Severn Bridge river crossings to entice new companies onto the site, with a potential of accommodating a further 400-500 jobs.

An extensive refurbishment programme will commence shortly and the developer has also announced that three other tenants - Breconridge, Zarlink and Newport Networks - have all committed to new leases at the Park.

David Herbert, development consultant for Robert Hitchins, said: "We have agreed to restore the areas used by existing companies and encourage more companies into the area. "There are currently around 500-600 people on the site, with scope for an additional 400-500 new jobs if we can get new businesses in."

The park was previously owned by Mitel, a leading global provider of enterprise and small business communications solutions.

Graham Bevington, Mitel managing director says the company has agreed a long term lease back deal with Robert Hitchins and their European headquarters will remain on site and business will operate as usual.

Mr Herbert continued: "Interest has already been encouraging, particularly from the telecommunication, IT and public sectors. Strategically, Castlegate Business Park represents an excellent opportunity for Robert Hitchins Limited to improve asset value and add to the company's expanding commercial property portfolio across South Wales which includes Eastern Business Park in Cardiff, Rassau Industrial Estate, Cleppa 4 in Newport and live development projects at Langstone Business Park and Fusion Point in central Cardiff. "The transaction has involved extensive negotiation of new lease deals with four companies and substantial refurbishment and management contracts. Our successful working relationship with the Mitel Networks management team was pivotal in securing a significant deal which took eight months to deliver."

Redevelopment is scheduled for the next two years and will include replacing the building's roof covering as well as refurbishment of internal areas.

The site includes a large restaurant facility with new facilities also being considered to meet the needs of a diverse workforce, including children's nursery and a fitness suite.

Robert Hitchins Limited will maintain a project office on-site for the duration of the redevelopment with group building surveyor Richard King assuming overall responsibility for the refurbishment of the site.