A £2.5m support package has been secured to assist the completion of a landmark commercial development at Hutton Court on Consett Business Park in Durham.
The funding will enable Priority Space to transform the brownfield site into a hub of 14 high-specification commercial units for SMEs.
The site formerly served as a working collier and has units ranging from 1,250 sq ft to 2,000 sq ft. It is specifically designed to meet the growing demand for new build units in the North East.
Funding to support the development has been provided using a £2m 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 £500,000 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.
Lee Buchanan, director at 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."
Richard Scott, Director at HTA Real Estate said "This scheme provides the chance for SME's to acquire modern industrial space to help grow their businesses. The units being available to both rent and purchase is also a benefit giving occupiers maximum flexibility".
