WH Smith is to open a 37,500sq ft news distribution centre on the Team Valley Trading Estate.
Construction is under way on the centre, at UK Land Estates' Queen's Park development, on the site of the former Ingersoll Rand headquarters.
The move follows a two-year search for suitable premises.
The centre will house more than 200 staff and distribute more than 1.4 million newspapers and one million magazines to more than 1,500 customers in the region, including retailers such as Asda and Tesco.
Darren Turner, manager of the Newcastle centre for WH Smith, said: "Our new distribution facility will match our business model requirements and greatly improve overall efficiency and working practices as part of a UK-wide programme to take WH Smith forward in the 21st Century.
"We turned to UK Land Estates as the obvious choice for provision of the right building in the right location.
"Queens Park will be home to the largest WH Smith News Centre in the country. It will also enable us to expand and take on additional staff.
"After two years looking for the ideal location for our regional centre, we feel that Queens Park offers us this and will enable us to service the region efficiently due to its excellent road links."
Gary Hudson, development director for UK Land Estates, said: "We are delighted that WH Smith has chosen this site for their new regional distribution centre. We have worked closely with WH Smith over the past two years to find a site which satisfied all of their requirements.
"The Queens Park development will mirror the contemporary look and feel of the Picture House, UK Land Estates' headquarters, which received a British Council for Offices design award.
"The development will transform this largely neglected site into a location for the highest quality business occupiers. The development combines vitality, quality and flexibility within an accessible environment in which businesses can flourish."
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