The rest of the 83-acre site at Stoke will be sold to a property development company, and used for retail, commercial and residential use.
The base will comprise new offices, conference and technical facilities for training to replace the existing, but out-dated, buildings. The work is still subject to planning permission but PSA hopes to move in by the end of 2007.
Since vehicle support activities were transferred to the Ryton assembly plant, the site has been used as a car park.
PSA announced plans in January 2004 to regenerate the site and launched a tendering process, in consultation with Coventry City Council. Property developer the Astral/Parkridge Group won the contract.