A significant £2.5million support package has been secured by Priority Space to assist the completion of a landmark commercial development at Hutton Court on Consett Business Park in Durham. It is transforming a historic brownfield site into a hub of 14 high-specification commercial units for small and medium-sized enterprises (SMEs).
The Hutton Court development in Consett Business Park development is a scheme of new build units. The site, which formerly served as a working colliery has units ranging from 1,250 sq. ft to 2,000 sq. ft (116 sq m to 186 sq m), is specifically designed to meet the growing demand for new build units in the North East. Sheffield-based commercial property developer Priority Space has led the scheme and boast a national portfolio of delivering regeneration projects that deliver excellent workspaces for micro and SMEs.
Funding to support the development has been provided using a £2million loan provided by FW Capital under the North East Commercial Property Investment Fund which is managed by FW Capital and backed by The North East Mayor Kim McGuinness. An incentive of £500K has also been provided by The North East Mayoral Strategic Authority to address the financial viability gap. This inward investment scheme will support new jobs and contribute to local economic growth.
Completion is expected in July this year. The units meet modern specifications with 5.7 metre eaves, floor loading of 30KN/m2, electrically operated insulated sectional overhead doors with protection bollards, electric car charging ports, solar reflective double glazing, shared forecourts and services yards with designated car parking and visitor spaces. The scheme is well located near to the Number One Industrial Estate, which consists of 790,000 sq ft (73393 sq m) of industrial space providing accommodation to over 106 businesses, including Legrand Electric, CAV Aerospace, Howden Joinery and Wolseley Group.
Lee Buchanan, Director Priority Space said: “This investment has enabled us to kickstart the Hutton Court development in Consett Business Park and regenerate a previous brownfield site that had been a working colliery in the past. Prior to receiving the funding, we had been struggling to get the site moving, needing a significant working capital injection to support our ambitions. Chris and the team at FW Capital have been fantastic to work with. As we near completion, we are already in discussions with SMEs looking to lease or purchase space in this prime location. We also have plans to look at further developments across the North East and hope to work with FW Capital on these too.”
Chris Dixon, Fund Manager at FW Capital added: “Priority Space is bringing to Consett quality new industrial units which can be used by a diverse range of businesses. This will have a significant impact on the local economy by bringing further new jobs and inward investment. It’s also fantastic to be able to combine funds with The North East Mayoral Strategic Authority to help get this development started and come to fruition.”
The North East Commercial Property Investment Fund is a £35million fund which provides loans of up to £7 million to support both non speculative and speculative developments for new build or refurbished commercial projects. This includes industrial units, distribution facilities or office schemes located in the seven authority areas: Northumberland, County Durham, Gateshead, Newcastle upon Tyne, North Tyneside, South Tyneside and Sunderland. Repayments will be reinvested in new schemes, creating a total investment of £119 million into commercial property in 15 years. It aims to create 5,600 jobs and develop 140,000 sq. m of commercial space.
