Working is about to start on Gateshead’s first speculative light industrial estate for more than six years thanks to European and local cash incentives of almost four-million pounds.
The 6.5-acre park is being built next to the A1 (M) at Birtley by brownfield reclamation specialists, Ravensworth Property Developments. Portobello Trade Park will provide 15 units targeted at start-up and expanding industrial companies.
Planning permission for the £7m development, next to the long-established Portobello Industrial Estate, was granted by Gateshead Council last year. Since then Ravensworth — part of the Durham-based MGL Group — has been putting together the funding which includes a £982,000 loan from the North East Investment Fund (NEIF).
The North East Local Enterprise Partnership, which manages the NEIF, agreed to part-fund the development after appointing an independent surveyor to appraise the scheme. Ravensworth had already received £2.75m from the European Regional Development Fund.
“The bank financing position is still very tight for speculative schemes in the region,” explained the company’s development manager, Geoff Clark.
“The North East LEP is filling the gap between available bank finance and public sector funding, without which speculative schemes for SMEs would not get funded. Ours is a perfect scheme for them,” he added, “in and out, and with the money repaid quickly.”
Ravensworth has spent five years on the project, locating and purchasing a suitable site on the main gateway to Gateshead before applying for planning changes to allow it to be used for employment.
“This is a very attractive location for businesses that need to be close to the motorway,” said Clark. “It’s a highly-visible, easily accessible site, and the high level of enquiries prior to the start of construction has been very encouraging.” So far more than 60 companies have expressed a leasing interest, from trade counter operators who like the prominent location, to engineering and warehousing users looking for modern high bay units.
Once completed Portobello Trade Park will create almost 250 jobs in units ranging from 2,100sq ft to 23,000sq ft in a part of Gateshead that once supported heavy industry, but now does not even have suitable space for light engineering or fabrication.
Paul Woolston is chairman of North East LEP. “Ravensworth has a strong track record in delivering projects and this scheme ticks many of the boxes in our priorities and objectives, list,” he said. “It will develop skills and employment, support enterprise and private sector business growth and strengthening transport, connectivity and infrastructure in the region.
“It prime location is also ideal for a new business park,” he added. “It will be a very visual reminder to thousands of daily commuters about the benefits of development through the North East Investment Fund and working with the LEP.”
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