Casey Group has started demolition of Rugby Mill in Chadderton to prepare for new commercial development.
The 200,000 sq ft former textile mill was acquired by Casey in 2011. The premises had fallen into disrepair and council planners deemed them unsuitable for occupancy.
The three-acre site, behind Costco at Junction 21 of the M60, will be offered to the market for temporary storage use while prelets are sought for the first phase of development.
Together with the adjoining six acres of land, which is also owned by Casey, the area is set to be developed into a new employment site with industrial and warehouse units.
Preston O'Herlihy and Lambert Smith Hampton have been retained as joint agents on the development.
Sara-Jane Preston, director of Preston O'Herlihy, who advised Casey in the acquisition, said: "The demolition is the first phase in a significant development for the Oldham area. The site will be cleared by Easter 2014, and will be offered as short-term storage while being marketed for phase one of the scheme. This will involve £4m of new investment and will create many new jobs in Oldham borough."
Andrew Aherne, industrial director at Lambert Smith Hampton, said: "The site will offer one of the few prime developments on the east side of the M60, and provides a unique opportunity for occupiers seeking to locate in the area."
Indigo Planning advised Casey Group.