A NEW regeneration partnership will see 23 sites across the region turned into potential employment hotspots.
Regional development agency One North East has transferred its 1,000 plus acre development land portfolio, worth £25m, into a new company, Onsite North East.
The new company is a joint venture between the agency and property developer Langtree.
Langtree, which has put match funding into the venture, will manage the project to develop the sites over the next 15 years, with proceeds used to fund further regeneration activities.
The sites are spread throughout the region at locations including Newton Aycliffe, Durham City, Consett, Hartlepool and Billingham.
While they are aimed primarily at developing workspace, warehousing and offices, there are a number of sites that have the potential for leisure, retail and residential uses.
Stephen Barnes, of Langtree, will be the chief executive of Onsite North East.
He said: “One North East’s development portfolio offers a unique opportunity to encourage property investment within the region.
“This asset base is the ideal foundation for creating commercial opportunities that will benefit the region.
“Langtree’s experience and expertise of similar delivery vehicles will greatly assist us in ensuring that Onsite North East is a great success that these sites are developed and that jobs are created.
Langtree has a strong track record of delivery with public sector partners and we are confident that Onsite North East will become a key delivery vehicle within the region.”
One North East chairwoman Margaret Fay said: “One North East is focused on helping the region out of the recession, but we also need to maintain our longerterm outlook for the future of our economy.
“The purpose of this partnership is to accelerate development on the agency’s industrial and commercial sites and maximise the value of our assets, using the resources and expertise of private partners.
“We have introduced private sector investment and expertise into other projects with considerable success.
“We feel this new partnership can harness the potential of these major sites to accelerate regeneration and help the region come out of the downturn in the best possible shape.”
Onsite North East will be based in the Glover Network Centre, in Washington, Wearside, and will work with a wide range of partners including owner-occupier businesses, property developers, agents and public sector bodies.
This is the second major Regeneration Public Private Partnership that One North East has formed, following a joint venture in 2004 with UK Land Estates called Buildings for Business.
It managed and developed the agency’s 1,700 properties on 49 business estates.
It is the third major long-term public/private development services contract for Langtree following the success of its Network Space joint venture with the Homes and Communities Agency and PxP West Midlands with Advantage West Midlands.
A report by Pricewaterhouse Coopers shows One North East has directly created more than 24,400 jobs from its investments and reclaimed 210 hectares of disused land for new business development over the past five years.
Sites for development in County Durham and Teesside:
● Villa Real, Consett;
● Greencroft, Anfield Plain;
● Meadowfield, Durham;
● Sedgeledge, Houghton le Spring;
● All Saints, Shildon;
● Heart of the Park, Newton Aycliffe;
● Oaksway Industrial Estate, Hartlepool;
● Wynyard Park, Wolviston;
● Queens Meadow, Hartlepool;
● Belassis Hall, Cowpen Lane, Billingham;
● ETOL, Wilton;
● Kirkleatham, Redcar.
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