Work is now under way on a £3.5m South Tyneside retail scheme after it received backing from a property investment company.
Newcastle-based developer Modo Bloc is driving plans to create the new development on a brownfield site in South Shields, which will include four roadside retail units, featuring a drive-through Starbucks, Greggs, Indigo Sun Retail, and eight EV charging stations. The development is expected to create up to 40 new jobs once up and running.
Now Develop North PLC, managed by Newcastle-based fund management specialists Tier One Capital, has provided £2.4m in funding to support the development of the project, based on land off Claypath Lane and the A194.
Contractor Castle House Projects is delivering the construction phase, which is expected to take around nine months to complete. The scheme is the latest in a series of successful developments to receive backing from Develop North, which has a strong track record of supporting commercial and mixed-use regeneration across the region.
Develop North, which is listed on the main market of the London Stock Exchange, provides finance solutions of between £500,000 and £5m to professionals and businesses across the North of England and Scotland.
Since its launch in 2017, Develop North said the fund has ploughed almost £100m into more than 40 projects, creating more than 3,200 jobs and helping deliver a gross development value of nearly £250m.
George Jenkins, managing director at Modo Bloc, said: “We’re pleased to bring a neglected site back into productive use and to support the regeneration of this part of South Tyneside with a high-quality roadside retail offer. Developments like this provide long-term economic and consumer value by creating jobs, enhancing local amenities and encouraging further investment in the area.
“This scheme shows what can be achieved with a strong local development team and the right funding partner. We’re delighted to be working with Develop North and Castle House Projects to bring it forward.”
Brendan O’Grady, fund manager at Tier One, the investment adviser to Develop North, said: “This is another example of how Develop North funding is helping unlock well-planned developments that deliver real community and commercial value across the North East.
“It’s exactly the kind of project we aim to support, one that regenerates brownfield land, creates jobs, and delivers long-term economic benefit. Our role is to provide the financial support that allows credible developers like Modo Bloc to move quickly and confidently through the development process.”
