Tesco’s Spen Hill Developments and Santon Group Developments have bought 100 acres near Bristol for a major new distribution hub for the supermarket.

The site, alongside the M49 at Pilning, will be known as the Portal West Distribution Park.

Mark Cooper from Santon Group Developments confirmed that Tesco would be the first tenant for phase one of the development, for a new fresh food distribution centre serving its stores across Wales and the south west.

Construction will begin shortly, with the first phase due for occupation by Spring 2010.

A spokeswoman for Tesco said the site would replace Tesco’s nearby Chepstow distribution centre.

She said: ‘The site at Chepstow is almost 20 years old now and provides no room for expansion. However the number of stores the site services has grown considerably in this time and it can no longer meet current or future demands.

‘This new state-of-the-art facility will allow us to greatly enhance the service to our stores and customers across Wales, the South and South-West England.

‘We have worked extremely hard to find a new site just under nine miles away and the close proximity to Chepstow will allow for all of our staff to have the opportunity to take a role at the new facility, keeping more than 750 jobs in the area.’