We have bought a warehouse on the M275 that will allow Portsmouth International Port to expand its business.
The council has secured the former Neon Signs building, in Prospect Road, which has been vacant for some time.
Cabinet member for planning, regeneration and economic development Cllr Ben Dowling said: "This is a key investment in a strategic Portsmouth site.
"This purchase will enable future growth of port related activities which will drive economic prosperity into the city for residents and businesses."
The highly visible, easily accessible 13,200 sq ft two-storey building is located at the main entrance to the naval base and includes office space on the first floor.
Steve Williams MMD Shipping Services general manager said: “Our strategy to further develop MMD has taken another step forward, now a dedicated office site has been secured in a prime location. Our commercial and operational team will be relocated into the new building, which means we can utilise terminal space more efficiently and safely.
“This marks an exciting development for the business, creating an improved working environment for our employees and clients. It also demonstrates to customers that we’re seriously investing in the business across all areas, including the significant multi-million pound regeneration taking place on site. We hope to be in our new offices by early 2019.”