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West Chirton prepares to welcome first tenants

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

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£290m Growth Deal for North East

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.”

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Connect with HS2 contract opportunities

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 Julie@yellowbrickroadltd.co.uk.

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Official opening of essential business space

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.

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Rural Growth in the North East

Opportunities for economic growth in the rural areas of Northumberland, Tyne and Wear and County Durham will be debated at an event on Friday 1 February at Kirkley Hall, Ponteland which has attracted leading regional names in both private and public sectors as speakers and delegates.

The event is part of the North East LEP’s North East Economic Review, led by Lord Adonis.

Speakers include Lord Don Curry, chairman of NFU Mutual Insurance, Northumberland farmer and member of the North East economic review team, Frances Rowe from the Centre for Rural Economy and Institute for Social Renewal, Richard Baker of RBLS Consulting and Professor Keith Shaw from Northumbria University.

It is being hosted by Northumberland County Council. Councillor Jeff Reid, leader of the County Council and board member of the North East LEP will open the seminar.

Councillor Reid said: ‘This event, which is a key part of the North East LEP’s economic review, is a fantastic opportunity for rural stakeholders to identify new ways to boost the North East economy overall. We are pleased to be hosting over forty delegates including representatives from the business, public and the community sector. Key Government partners will also be in attendance.

“Our focus will be on ensuring this debate helps to get the right messages about rural growth into the final recommendations of the economic review that Lord Adonis will present to the Government.”

Opportunities for growth in the rural economy will be discussed by Frances Rowe, and Richard Baker will explore rural economies in their wider context. Lord Don Curry will give a presentation on the North East independent economic review.

Lord Curry and Edward Twiddy, director of the North East LEP will sum up the morning’s conclusions and set out next steps in the economic review.

The North East LEP commissioned an economic review, led by Lord Adonis, to look at the long term economic growth in the area to 2030. Lord Adonis and the review team will produce a concise report in Spring 2013 setting out five policy recommendations for the North East LEP, five policy recommendations for key LEP partners in the North East, and five policy recommendations for central government.

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

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North East LEP allocated £30M from regional growth fund

The North East Local Enterprise Partnership has been allocated £30 million from the Regional Growth Fund to develop an infrastructure fund. By targeting those projects with the greatest economic returns the fund aims to create at least 2,300 new jobs over 10 years.

The North East LEP will lever in matched funding from the private sector and bring together other monies under its local control, including the North East LEP’s existing £25m Growing Places Fund, to maximise its ability to unlock strategic infrastructure investments across County Durham, Northumberland and Tyne and Wear.

The North East LEP’s infrastructure fund (NEIF) will be open to private sector and public sector applicants. Decisions will be made according to criteria which will reflect the economic returns from the investment whilst also taking into account the benefits to the least advantaged communities.

Information on how to apply and the criteria against which bids will be assessed will be issued in time for the fund to begin spending in the next financial year. In the meantime the North East LEP’s call for projects to apply to its existing Growing Places Fund remains open until Friday 9th November 2012.

The success of the bid reflects the joint working of all the local authorities with the North East LEP team during an intense bid-writing period in early June, supported pro bono by PwC’s local and national teams.

This joint and collaborative approach is already paying significant dividends in other areas such as the Enterprise Zone, and the LEP Board remains committed to strengthening the relationships that underpin this success.

Speaking about the success of the RGF bid Paul Woolston, chair of the North East LEP said: “Timely and targeted infrastructure development is at the heart of a thriving, outward looking regional economy. The RGF support for NELEP’s infrastructure fund recognises that private and public investment is critical to realise opportunities in the area.

“The fund will create more than 2,333 new jobs in the North East over its lifetime and bring £30m of immediate investment into the region. NELEP’s investment panel will welcome applications from private and public partners and offer a mix of grant where necessary but predominantly will be focusing on extending the scope and term of its loan funding.”

Cllr Simon Henig, deputy chair of the North East LEP said: “The infrastructure fund will shape future investment in the region’s key sectors, helping us to grow our international presence in offshore, automotive, digital, professional and business areas.

“Public and private sectors will benefit from the wide-ranging remit of this fund. It will help to drive the economy not only of this area, but of the UK. I’m delighted that through strong joint working the LEP will be supporting even more investment to boost jobs and growth.”

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