Newcastle City Council announced a new partnership with a private sector developer today to complete the rebirth of the Stephenson Quarter – one of the UK’s most high-profile development sites.
It will team up with PfPigloo to form a joint venture company Stephenson Works LLP which will facilitate the regeneration of 4.3 acres of brownfield land behind Central Station creating an estimated 2,000 jobs.
PfPigloo is the collaboration between fund manager, PfP Capital and igloo Regeneration that is undertaking development of the Ouseburn Valley in Newcastle.
The new partnership with PfPigloo is the outcome of a two-staged competitive bidding process which attracted a number of developers.
Phase one of the development saw the creation of the Crowne Plaza Hotel, Rocket Offices, the Boiler Shop venue, a multi-storey car park and a University Technology College creating 1,000 jobs.
The second and final phase will see the remainder of the site’s historic buildings brought back to life combined with new residential development, office space, leisure and public realm creating a vibrant quarter for the regional economy to attract residents, businesses and thousands of visitors who pour into the region every year through the adjacent Central Station.
An estimated £104m of investment will transform six plots, all council owned land which will be developed by the new partnership over a seven-year period.
James Forrester, managing director of StripeHomes, said: “This is fantastic news for the region and it’s great to see inward investment into an iconic area of Newcastle.”
“This week’s announcement from the council brings more confidence to developers and investors and it’s large scale projects that’ll get the city’s economy moving again as we look to build, build, build.”
Cabinet Member for Employment and Culture, Cllr Ged Bell, hailed the announcement as great news for the city as it looks to recover from the pandemic.
Cllr Bell said: “We must do everything to kickstart economic activity in the wake of COVID-19 if the city is to bounce back, so the announcement of PfP Igloo as our development partner is incredibly important.
“With its historic buildings, the Stephenson Quarter is a gem of a development site. We’ve had great success with the previous developer the Clouston Group bringing forward the hotel, technical college and offices, but this new phase will accentuate the heritage of many of its listed buildings which makes the site unique.
“The jobs that will be created – many of them in the construction sector – will be extremely valuable to our economic recovery and give residents new opportunities.”
John Tatham, PfPigloo Director, said: “We are excited to be involved in taking forward development of Stephenson Quarter as it gives us an opportunity to build on our success in the Ouseburn Valley and continue the transformation of another key part of Newcastle city centre.”
Under the new partnership, the council will contribute the land and the developers will contribute an equal share of capital investment to bring plots forward. The council has the option to invest capital in plots, should it wish to do so.