Business growth and finance Archives - Page 28 of 29 - North East Local Enterprise Partnership

Work on North Tyneside’s first speculative business park since the credit crunch has been completed and developers expect to announce the first tenants in the next few weeks.

The Hellens Group’s £2.6 million West Chirton development near the A19, known as Elm Park, was funded by a £460,000 loan from the North East Local Enterprise Partnership’s (LEP) North East Investment Fund, £1.1m from the European Regional Development Fund (ERDF) and the company’s own money.

Comprising 17 units, the 34,000 sq ft of high quality business space is expected to create or safeguard 68 jobs when it is fully occupied.

Hellens Group chief executive Gavin Cordwell-Smith said: “We’ve received significantly more interest that we expected. We tend to find that businesses like to see units completed before committing themselves but we’ve had a number of viewings already and are discussing terms with a number of parties.’

“The units are primarily aimed at small and medium sized businesses and we’re hoping to attract manufacturers, possibly those working in the offshore field. There are a number of large contracts underway along the Tyne and we’re hoping we’ll be able to tap into the supply chain.

“There’s very little available of this quality and no developments have been built in North Tyneside for a number of years. From the interest we’ve received, there is significant demand.”

Hellens also completed the second phase of the Teal Farm business park development at Washington in February. The first part was completed in 2008 and let during the recession but there was no bank finance available for the second phase.

The £1.2 million for development of the four units was funded through a £200,000 Growing Places Fund loan from the North East LEP and a £680,000 grant from the ERDF. Teal Farm is now 50 per cent let and Mr Cordwell-Smith is confident the units will be fully occupied by the end of the year.

“We hope Teal Farm’s success will be emulated by Elm Park, West Chirton,” he said. “The level of enquiries has been significantly higher than at Teal Farm, which suggests it will be.”

Hellens already owned the West Chirton site near the Silverlink roundabout and the Tyne Tunnel, but like Teal Farm, the project was put on hold for a number of years because of the recession and the lack of available funding for speculative projects.

Mr Cordwell-Smith said: “We were hoping to develop the units sooner but due to the lack of bank finance progress stalled. Without the ERDF grant funding and the loan from the North East LEP we wouldn’t have been able to develop it.

“The North East LEP loan was really straightforward. The staff and consultants were very thorough in terms of due diligence.’

The North East LEP manages the North East Investment Fund, including Growing Places Fund and Regional Growth Fund contributions. Money from the fund is reinvested to supply future loans for developments aiming to improve the region’s economy.

Paul Varley of the North East LEP’s investment panel, said: “We are delighted that the West Chirton project is on course to welcome its first tenants and create more employment for the region.

“The demand being experienced by West Chirton and Teal Farm developments shows the need for new high quality business space in the North East and is an excellent indicator of improvements in the region’s economy

The North East Local Enterprise Partnership has secured £290m investment which will create thousands of new jobs for the North East.

The investment is part of the government’s Growth Deal, which was announced today (Monday 7 July), and provides the North East with a significant funding to take forward its plans for economic growth.

The substantial investment which will create over 4,000 new jobs and deliver £90m in additional public and private sector funding, is clear recognition from government of the North East’s ability to work in partnership and achieve its ambitious plans.

The £290m, which is the third highest allocation in the country, will support projects that were set out in the LEP’s North East Strategic Economic Plan ‘More and Better Jobs’. The plan, which builds on from Lord Adonis’s North East Independent Economic Review and was developed with local partners and businesses, provides a comprehensive plan to create sustainable and inclusive growth for the North East.

The North East’s Growth Deal will provide funding for each of the themes within the economic plan investing in projects around innovation, skills, business support, transport, developing economic assets and supporting inclusive growth.

On top of the investment the deal also includes a commitment from government to work with the enterprise partnership to bring forward plans around improving educational attainment and developing a new development and infrastructure fund for the North East.

The key features of the Growth Deal for the North East LEP are:

More jobs:

Investment in economic assets and transport: Funding for a comprehensive package of investment to ensure the North East has the infrastructure and facilities to support inward investment and regional growth. For example allowing companies involved in supplying Hitachi Rail Europe to locate close to its new facilities at Merchant Park, and a project to create rural ‘enterprise hubs’ proving flexible workspace for small businesses.

Better jobs:

Investment in innovation:
Funding for a number of projects to support technological advances in key industries, helping the North East achieve its innovation vision and become an exemplar in Smart Specialisation and open innovation. For example, Sunderland Enterprise and Innovation Hub, which will provide the first ‘Fab Lab’ in the North East.

Investment Skills:

Funding and commitment to support improving educational attainment and training available to local people in skills which are important for growing sectors including advanced manufacturing, offshore wind and low carbon energy technologies.

Paul Woolston, Chair of the North East Local Enterprise Partnership said: “Our economic plan ‘more and better jobs’ set an ambitious vision for the North East, to transform the economy and create more and better jobs. We are delighted that government is supporting our proposals with such a significant investment.

“Our £290m Growth Deal endorses our approach providing investment for innovation, skills, business support, transport, developing our economic assets and supporting inclusive growth. It also sets out a clear commitment to work closely with the enterprise partnership to bring forward proposals around improving educational attainment and a new development and investment fund.

“The deal will act as a catalyst to lever in substantial private and public investment. It builds on the great work that is already happening across the North East and will create more and better jobs for everyone through making, trading and innovating to provide sustainable and long term growth.

“It marks the beginning of an exciting journey for the North East, and I’m looking forward to working with our partners and government to make it happen.”

Simon Henig, Chair of the North East Combined Authority and Vice Chair of the North East LEP said: “Our successful bids to the Single Local Growth Fund are a massive vote of confidence in the North East and will potentially mean a major boost to the region’s economy. The projects will not only increase job prospects across the North East but also improve transport links to make sure that people are able to take advantage of them. The multi-million pound package of investments could bring thousands of additional permanent jobs to the region, boosting our economy for years to come.”

Andrew Hodgson, North East LEP Vice Chair and Board member lead for skills said: “The Strategic Economic Plan clearly demonstrated the essential role skills plays in driving forward long term economic growth. At the enterprise partnership we have placed the focus firmly on skills from the outset and it’s great that the Growth Deal is supporting our position.

“The business community now has a central role to play in ensuring we achieve our vision. Business leaders and our partners have already demonstrated their commitment to take forward these plans and now the Deal will provide an essential resource to help deliver them.

“At the heart of our proposals is a partnership of schools, local education authorities and businesses with a commitment to build on the recommendations of the North East Independent Economic Review to improve educational attainment across our schools. The growth deal support is the deal-maker to give it the mandate to deliver change.”

Roy Sandbach, North East LEP Innovation Champion said: “It is fantastic news that these projects have been supported through the Local Growth Fund. At the heart of our Economic Plan, the Enterprise Partnership is aiming to facilitate highly effective innovation activity by building our innovation hubs, supporting innovation-centric businesses, small and large and by providing the type of environment which can attract innovation opportunities and investments from across the globe. These 5 new developments will add considerably to our capacity to deliver this.”

The High Speed Rail team is visiting the North East on Tuesday 29 April from 12pm to 3pm to explain how local companies can profit from winning HS2 related contracts.

HS2 Ltd has teamed up with the North East Local Enterprise Partnership to host an event at Durham County Cricket Club aimed at suppliers interested in bidding for HS2 contracts.

A number of free places are still available to book. The HS2 Market Engagement event will give businesses the opportunity to find out more about HS2’s outline procurement strategy and offer the opportunity to talk to individual team members and ask questions face-to-face.

The event will begin with a networking lunch, followed by presentations from the HS2 procurement team. There will then be a chance for individual discussions with team members.

This event will appeal to businesses interested in bidding for HS2 related contracts in categories such as tunnels, surface routes, stations, enabling works (including demolition), railway systems, design services, rolling stock, depots and signalling.

Paul Woolston, chair of the North East Local Enterprise Partnership said:
“This is a great opportunity for local businesses to find out how they can benefit from HS2, and meet the people handling procurement for this £42 billion project. The potential for contract opportunities is significant. I hope as many regional businesses as possible come along to talk to the HS2 team in Durham.”

HS2 Ltd Commercial Director, Beth West said:
“HS2 will generate billions of pounds worth of contracts, giving businesses large and small across the UK the opportunity to bid for work during the construction and operation of HS2.

“We are also keen to work with businesses who are not traditionally involved in the rail sector. These can bring best practice techniques and products to ensure the delivery of HS2. We look forward to engaging with businesses early on in the process and we would like to encourage them to engage with us too.”

To attend or email [email protected].

ESSENTIAL new business space was officially opening this week, creating jobs and stimulating business growth in Washington following joined up investment of European and local regeneration funding.

Hellens Investments (Washington) LLP received over £500,000 investment from the European Regional Development Fund Competitiveness Programme 2007- 2013, which is managed by the Department for Communities and Local Government with match funding being provided by the company and loans from the North East Local Enterprise Partnership’s Investment Fund, which includes the Growing Places Fund.

Teal Farm Park Phase II development at Washington comprises four units built to BREEAM very good standard ranging from 4 – 7,000 square feet designed for manufacturing or distribution enterprises and for start up and move on businesses. The scheme supported more than 100 construction jobs and is expected to lead to 124 jobs when the units are occupied.

To mark the official opening Cllr Neil Foster, Deputy Chair of the North East ERDF Local Management Committee, Cllr Paul Watson, North East LEP board member and Leader of Sunderland City Council and Gavin Cordwell-Smith, Chief Executive of Hellens Group will be present for the official handover of the units.

Cllr Neil Foster, Deputy Chair of the North East ERDF Local Management Committee, which engages key partners in the overseeing of the strategic delivery of the Programme in the North East said:
“Following the approval of ERDF investment, this development in Washington will stimulate business growth through the construction of a number of high quality work units, creating jobs, ensuring inward investment and addressing a shortage of such workspaces. These are essential criteria to support local growth and rebalance the economy and it is a pleasure to be here today to officially mark the opening of the development.”

Councillor Paul Watson, North East LEP board member and Leader of Sunderland City Council said:
“It’s great news to celebrate the official launch of Teal Farm Park with completion of both phases. The business park is a strong example of the sort of development the LEP’s North East Investment Fund, which includes Growing Places funding, was set up to support. We have watched it move towards completion following our funding, which is great news for businesses and the region. The first phase has already had a positive impact on the local economy, and the completed development has the size, location and quality to thrive in the future.”

The development is supporting SME creation and existing SMEs looking to stay in the area who might otherwise struggle to find quality business space as well as supporting inward migration of new entrepreneurs to the North East. The project is creating space which exceed environmental standards, allowing SMEs to enjoy energy efficiency savings and meet customer requirements for supply chain carbon reduction.

Gavin Cordwell-Smith, Chief Executive of the Hellens Group, the Washington based property developer and land regeneration specialist said:
“We are delighted to see these units officially opened. We are very grateful to the Department for Communities and Local Government for providing grants from the European Regional Development Fund. This funding, along with loans from the North East Local Enterprise Partnerships Investment Fund, has allowed the development to proceed. It will bring both significant economic and employment benefits to the North East.”

The £55m North East Investment Fund is a loan fund for businesses that are looking for financial investment to help them grow through capital and infrastructure projects. The fund, which includes Growing Place Fund and Regional Growth Fund monies, supports projects that will create jobs and encourage economic growth in the North East.

The Driving Forward Economic Growth Conference, organised by the North East Local Enterprise Partnership (LEP), attracted over 400 delegates to the one-day event at the Centre for Life, Newcastle.

Keynote speakers included Lord Andrew Adonis, chair of the North East Independent Economic Review, Lord Christopher Haskins, Chair of the Humber LEP and Gateshead Council leader and chair of the North East leadership board, Councillor Mick Henry.

The conference examined how far the region has come since Lord Adonis’s Review was published in April. It included panel discussions and workshop sessions exploring issues highlighted in the Review from job creation to accessing finance and the region’s infrastructure.

Lord Adonis said that what the region needs is “a single, unified approach, and one strategy on which we all agree.”
Both Lord Adonis and Lord Haskins agreed on the pivotal importance of skills to the region’s economy. Lord Adonis said: “Skills are transformational – n particular doubling the number of apprenticeships in the LEP area.”

North East LEP board member Andrew Hodgson, who is responsible for skills development alongside Sunderland College’s Anne Isherwood, said: “Lord Adonis’s review focused on the necessity of matching the region’s skills with the demands of the labour market and tackling the shortfall. Since the recommendations were published, the Business Secretary Vince Cable has chosen the region to develop a new skills model, which gives the North East LEP more influence on how skills funding is targeted.

“We are working with the North East Leadership Board of seven councils and the Skills Funding Agency to develop this skills model, with input from employers, colleges and training providers.”

The next steps, including creation of more and better jobs to drive the region’s role in the global economy, the North East’s Strategic Economic Plan and the 2014-2021 European Funding Strategy, were at the heart of the discussions.

Paul Woolston, chair of the North East LEP, said:
“It was heartening to see that there was standing room only at the conference, and a great response from delegates across all sectors to the speakers and panel discussions.
“It was good to welcome back the full review team led by Lord Adonis, and Lord Haskins, who gave an engaging, thought-provoking speech.

“The conference set out the next steps towards achieving the aims of the Adonis review and how we can move forward, creating more jobs and prosperity for the region.

“Our response, centring on the North East Strategic Economic Plan and European Strategy, shows the significant impact the review has already achieved.”

Councillor Mick Henry, Chair of the North East Leadership Board, said:
“We are already making real progress in implementing the recommendations from Lord Adonis.

“The Adonis Review has had a catalytic effect in the region, accelerating productive collaboration between universities, private and voluntary sectors and local authorities, on a shared agenda for economic growth.
“The Review strongly supports the establishment of a Combined Authority across the North East LEP area and we expect this to be operational by April next year. This will place the North East at the vanguard of new arrangements, to enable more devolution for local decision-making.”

Since Lord Adonis’ Review was published, the North East LEP has made a number of notable strides towards its recommendations. In July, it was awarded £7.5m in European funding from the fourth round of the Regional Growth Fund to boost the resources available to support small and medium sized companies; a North East Combined Authority is being formed; Professor Roy Sandbach was appointed to head the LEP’s innovation strategy, and the LEP was one of just three in the UK chosen by the Government to pilot innovative new approaches to skills development funding.
£25m of loans have been allocated by the LEP to projects in the North East LEP area in the last twelve months with a further £25m under consideration by the LEP’s investment panel.

Further information from Christine Holland, Holland PR & Marketing Ltd. Tel 01670 790246 or 07711 698246.

Save the date – Friday 6 September 2013
Centre for Life, Newcastle upon Tyne

Earlier this year we launched the North East Independent Economic Review, led by Lord Andrew Adonis, which set out how we can achieve more and better jobs and a better quality of life in the region. This conference discusses how we will respond to the review’s findings and recommendations. In particular it will focus on:

• The North East’s response to the Independent Economic Review
• The North East within the global economy
• Developing a Combined Authority for the North East
• The European Funding Strategy for 2014 – 2021
• The Strategic Economic Plan for the North East, including the Local Growth Fund

Key issues around the North East’s economic development, including innovation, skills and apprenticeships, access to finance, supply chain development, infrastructure and transport.

The conference will include key speeches and panel discussions. Lord Andrew Adonis and his review team will be in attendance, alongside senior local and national stakeholders.

Formal invitations will follow shortly, but if you’re interested in attending, please save the date now.

The future of regional banking will be the focus of an event that has attracted high profile national banking and finance experts to the Baltic on Friday 7 June.

It will include presentations from Anthony Thomson, founder and former chairman of Metro Bank, the first new bank on the high street in over 100 years, and Greg Clark MP, Financial Secretary to the Treasury.

They will be speaking alongside Sam Woods, Director, Domestic UK Banks Division, Prudential Regulatory Authority; Victoria Raffe, Director, Authorisations, Financial Conduct Authority; Jeremy Middleton, chair of the North East LEP’s investment panel; Gary Wilkinson, Cambridge@Counties Bank; Sarah Green, Director, North East CBI and Dr Thomas Keidel, Director and Head of Financial Market Relations, Deutscher Sparkassen.

The event has been organised by IPPR North with support from the North East LEP and the Financial Services Forum.

Anthony Thomson will reveal the issues and challenges he faced in launching Metro Bank and offer observations on the new regulatory landscape. He will also discuss whether the future lies in new regional banks, dealing solely with regionally-based businesses, organisations and individuals, or new banks that happen to be based in regions?

Victoria Raffe of the Financial Conduct Authority will talk about the FCA’s role in the new regulatory framework, what the FCA’s competition and consumer protection objectives mean in practice, and how they have to be balanced when considering applications.

Jeremy Middleton, chair of the North East LEP’s investment panel will discuss the North East’s access to finance, including bank and asset finance, venture capital funding and working capital funding.

Sam Woods of the Prudential Regulatory Authority, which was launched in April 2013 as one of the successors to the Financial Services Authority, will look at banking competition issues and regional banks, and at the wider regulatory backdrop.

Gary Wilkinson of Cambridge and Counties Bank will explain the remit of this business bank, launched last year to focus on providing loans to, and receiving deposits from, SMEs. He will discuss the challenges of authorisation as a new player andthe bank’s progress, including its customer experiences during the last year.

Banking Minister Greg Clark MP, Sarah Green of the North East CBI and Dr Thomas Keidel of Deutscher Sparkassen will also be speaking.

Following the presentations, speakers will answer questions from the audience in a panel chaired by Guy Opperman MP, to discuss the pros and cons of regional banking.

The Adonis Economic Review, commissioned by the North East LEP, recommended that the LEP area should explore the potential for the establishment of a regional business bank to meet the needs of local companies.

Jeremy Middleton, chair of the LEP’s investment panel, is a strong advocate for a North East based bank.

He said: “Access to finance across the North East LEP area is seen as a barrier to growth by many businesses. We want to encourage expansion of growing companies. A regional bank would understand the needs of the region and be able to react effectively, unblocking financial bottlenecks that frustrate business owners.

“I’m delighted that Anthony Thomson and Greg Clark – both originally from the North East – are actively involved in debating this important topic. Regional banking is identified as a recommendation by the Adonis review to help local businesses large and small access finance efficiently.”

The event is free and will take place from 10.30am-2.30pm including a buffet lunch at the Baltic Centre, Gateshead on Friday 7 June. Anyone interested in attending should e-mail Jacqueline Wills via [email protected]. Places are limited and will be allocated on a first come, first served basis.

Further information from Christine Holland, Holland PR & Marketing Ltd Tel 01670 790246 or 07711 698246. Email: [email protected]

A high profile event on Tyneside will debate the future of regional banking – a subject seen as central to a radical reform of UK banking.

The event will bring together the founder of the only new entrant to the retail banking market and the government minister leading the drive to encourage local banks, together with senior financial regulators, a director of Deutscher Sparkassen, the German savings bank, and local businesses. It will take place at the Baltic Centre, Gateshead Quays on Friday 7 June.

Anthony Thomson, founder and former chairman of Metro Bank, the first new bank on the high street in over 100 years, and Greg Clark MP, Financial Secretary to the Treasury, will speak about the challenges and opportunities of creating a new bank which will deal solely with regionally-based businesses, organisations and individuals. The event has been organised by IPPR North with support from the North East LEP and the Financial Services Forum.

Alongside Anthony Thomson and Greg Clark MP, speakers at the event include Sam Woods, Director, Domestic UK Banks Division, Prudential Regulatory Authority; Victoria Raffe, Director, Authorisations, Financial Conduct Authority; Jeremy Middleton, chair of the North East LEP’s investment panel; Sarah Green, Director North East CBI and Dr Thomas Keidel, Director and Head of Financial Market Relations, Deutscher Sparkassen.

The speakers will also answer questions from the audience in a panel chaired by Guy Opperman MP, to discuss the pros and cons of regional banking.

Anthony Thomson, who revolutionised retail banking when he founded Metro Bank, believes that the UK needs to enter into a new era of banking competition. Regional banks could offer more competition, consumer choice, credit for companies, stimulate growth and help rebalance the economy.

The North East LEP is supporting the event, and Jeremy Middleton, chair of the LEP’s investment panel, is a strong advocate for a North East based bank.

Banking Minister Greg Clark recently said: “I should like very much to see banks in our great regional cities, as used to be the case: banks that can take deposits from local people and, knowing what local investment opportunities they have in the area, can establish a connection.”

Director of IPPR North Ed Cox said: “We are really pleased to be organising this event with colleagues from across the North East. Regional banks could play a key role in stimulating local economic development and rebalancing our national economy. As our report ‘Northern Prosperity is National Prosperity’ showed – the north has a huge economic contribution to make and regional banks are a great way to drive this.”

Further information from Christine Holland, Holland PR & Marketing Ltd Tel 01670 790246 or 07711 698246. Email: [email protected]

A £1.2m scheme to transform a brownfield site in Washington into a thriving business park, creating 112 jobs, has been revived after securing a cash injection from the Growing Places Fund.

Teal Farm Park initially secured planning consent in 2007, and the first phase of the project was completed shortly afterwards. However, due to the recession, further development of the site had to be shelved.

Now, the speculative development is set to be completed after its developer, land and property regeneration specialist Hellens Group, won £200,000 backing from the multi-million pound Growing Places Fund, managed by the North East Local Enterprise Partnership.

Teal Farm Park, which is being developed on derelict former industrial land in Washington, has already created 124 jobs through its first phase, and a further 112 are expected to be created once the scheme completes. Once finished, there will be two ‘terraces’ of industrial units on the site, and construction of the second terrace is expected to begin in June.

Washington-based Hellens Group turned to the government’s Growing Places Fund after being refused funding by banks to complete the project, despite fully letting the first phase of Teal Farm Park within two years. The Growing Places Fund, managed by the North East LEP offers loans to kick start the growth of infrastructure, housing and economic development schemes which have stalled in the economic climate. The evergreen fund reinvests loans to help further projects.

Gavin Cordwell-Smith, chief executive of the Hellens Group, said: “Teal Farm Park will be a very important site for Washington, and is one of the first speculative industrial developments in the whole of the North East since the credit crunch. It will be significant in terms of attracting new businesses to the town, and also for the employment and investment that accompanies that.

“We are very grateful to the Growing Places Fund and the North East LEP for making it possible for us to go ahead with the second phase. Despite successfully constructing and letting the first phase, the banks refused to give us any funding, meaning that, being an SME ourselves, we were unable to complete the project. Now, we look forward to the completion of the site, and the benefits to Washington and the region that will bring.”

Jeremy Middleton, chair of the North East LEP’s investment panel, said: “The Growing Places fund was established to help create new jobs and economic growth by unlocking the potential of projects which stalled due to the economic climate.

“Teal Farm Park is exactly the sort of development which we are able to support, and I am very pleased that the fund has enabled the Hellens Group to look towards its completion. The first phase has had a very positive impact on the local economy, and I am confident the completed development will thrive.”

For more information contact Christine Holland, Holland PR & Marketing Ltd. Tel 01670 790246 or 07711 698246.

Category: Business growth and finance

West Chirton prepares to welcome first tenants

£290m Growth Deal for North East

Connect with HS2 contract opportunities

Official opening of essential business space

Driving Economic Growth in the North East LEP Area

North East LEP Area Economic Growth Conference 2013

The Future of Regional Banking Event

The Future of Regional Banking

Growing Places Fund Revives Business Park Scheme in Washington