Work has started on a £4.5m speculative development at UK Land Estates' Tyne Tunnel Trading Estate in North Tyneside.
The scheme - supported by a £731,818 grant from the North East Local Enterprise Partnership via the Getting Building Fund - will deliver 4,485 sqm of industrial space for a range of occupiers.
UK Land Estates says the L6 development, located on the Intersect 19 area of Tyne Tunnel Trading Estate, is due to be completed this summer.
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Tim Witty, development director at UK Land Estates, said: “As the region recovers from the pandemic and the economy starts to move up a gear, there is rising demand for this kind of accommodation from a wide range of different companies.
“However, carrying out speculative development in the current economic climate can be challenging so we are very grateful to the North East Local Enterprise Partnership for providing grant funding towards this project.
“This has meant we have been able to get on site and get building now so that we can fulfil that demand from growing regional manufacturing and logistics businesses for space like this.
“L6 will also further support the Tyne Tunnel Trading Estate as a significant engine of economic growth in the North East.”
The North East LEP is managing £47m awarded through the Government's £900m Getting Building Fund to support capital investment across the North East. The Fund was established early in the coronavirus pandemic to kick-start the economy, create jobs and help areas realise growth opportunities coming out of the coronavirus pandemic.
Helen Golightly OBE, chief executive of the North East Local Enterprise Partnership, said: “The business community has endured a lot of uncertainty over the past two years, but now that domestic COVID restrictions have largely been removed, confidence is returning to the sector.
“By investing in shovel-ready projects, like the development at Tyne Tunnel Trading Estate, the North East is creating the infrastructure to capitalise on the increase in demand for commercial property, and placing itself in a strong position to meet the needs of investors.
“The new development at UK Land’s Tyne Tunnel Trading Estate will create the right high quality environment to support business growth and create more and better jobs in the North East.”
Earlier this year UK Land Estates announced that it was looking to help create more than 250 jobs with an expansion of Tyne Tunnel Trading Estate.
Plans were submitted to North Tyneside Council for a scheme which aims to transform the five hectare site of the former Corning’s glass works on the estate into more than 14,000 sqm of industrial-led units.
The site, which is part of the 2 million sq ft Tyne Tunnel Trading Estate in North Tyneside, will be developed into a mix of industrial and trade units, along with two drive-through outlets providing much-needed amenities.
On completion, the £12.5m development is expected to create up to 270 jobs as well as supporting an extra 45 jobs in its construction phase and helping create more than £2.8m worth of extra economic value for the area every year.
