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Wednesday, July 08, 2023

Onsite North East launches

A 25m regeneration partnership between Regional Development Agency One North East and property investor and developer Langtree has been officially launched and named Onsite North East.

One North East has transferred its impressive development land portfolio into the new Company, which is now tasked with managing and investing in the sites, accelerating their development and encouraging new property activity in the region.

The portfolio comprises 23 sites totalling in excess of 1,000 acres, ranging in size from 1 to 130 acres. The sites are spread throughout the region from Berwick upon Tweed in the north through to Redcar in the South. Key strategic sites such as Newburn Riverside and East Quayside, both in Newcastle, Ashwood Business Park in Ashington, Meadowfield in Durham and Queens Meadow in Hartlepool offer exciting potential for new investment.

While the focus of the portfolio is weighted towards workspace, warehousing and offices, there are a number of sites that have the potential for leisure, retail and residential uses.

Onsite North East, whose office is based in Glover Networkcentre in Washington, will work with a wide range of partners including owner occupier businesses, property developers, agents and public sector bodies in ensuring sites are brought forward, new activity encouraged and jobs created.

The primary focus of the partnership will be the development of the 23 sites transferred, using Langtree's expertise to accelerate development.

This is the second major Regeneration Public Private Partnership (PPP) that One North East has formed to drive forward the region's property market. In April 2004 the Agency and UK Land Estates formed the innovative partnership company Buildings for Business, which is recognised as national best practice - bringing in private sector expertise and finance to manage and develop the Agency's 1,700 properties on 49 business estates. Profits from the partnership are reinvested into improving the range and availability of business premises around the region.

One North East has transferred its land holdings into Onsite North East to maximise regeneration benefits and value for money from the sites. This joint partnership venture is expected to last for up to 15 years, and will enable both public and private funds to be made available to facilitate future developments. Proceeds from the development of these sites will be used to fund further regeneration activities.

Margaret Fay, Chairman of One North East said: "One North East is focused on helping the region out of the recession, but we also need to maintain our longer-term outlook for the future of our economy.

"The purpose of this partnership is to accelerate development on the Agency's industrial and commercial sites and maximise the value of our assets, using the resources and expertise of private partners.

"We have introduced private sector investment and expertise into other projects with considerable success. We feel this new partnership can harness the potential of these major sites to accelerate regeneration and help the region come out of the downturn in the best possible shape."

Stephen Barnes, Chief Executive of Onsite North East said: "One North East's development portfolio offers a unique opportunity to encourage property investment within the region. This asset base is the ideal foundation for creating commercial opportunities that will benefit the region.

"Langtree's experience and expertise of similar delivery vehicles will greatly assist is in ensuring that Onsite North East is a great success that these sites are developed and that jobs are created.

"Langtree has a strong track record of delivery with public sector partners and we are confident that Onsite North East will become a key delivery vehicle within the region."

This is the third major long-term public/private development services contract for Langtree following the success of its Network Space joint venture with the Homes and Communities Agency and PxP West Midlands with Advantage West Midlands.