The 海角视频’s largest investment group is backing a visionary masterplan to regenerate Sunderland’s city centre after agreeing a £100m deal with council bosses.
The huge deal by Legal & General – one of the the largest investments the firm has made in the North East – paves the way for the creation of thousands of jobs, as well as representing the biggest investment in Sunderland for decades.
The deal will lead to the construction of three new commercial buildings at the former Vaux brewery site, including the council’s new civic centre, comprising up to 300,000sqft of Grade A office space.
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It is hoped the plans will act as a catalyst for wider regeneration, driving regional economic growth and job creation within Sunderland.
A CGI has been released which reveals a vision of the future for the city, with commercial and housing developments, completely altering the face of the landscape.
The investment marks the second spend in the region by Legal & General, coming three years after its £65m commitment into the Newcastle Helix scheme to create new office schemes.
Legal & General said the potential it has seen in the council’s plans for Sunderland was the key driver for its investment.
Civic leaders in Sunderland hope the firm’s vote of confidence will ramp up the transformation of the former Vaux site and have a ripple effect into the city centre, creating a more vibrant High Street.
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Nigel Wilson, chief executive of Legal & General, said: “Sunderland City Council has drawn up a visionary plan for Sunderland; a city ripe for economic growth, having historically lagged behind its Northern neighbours.
“As seen with our other Future Cities investments in areas such as Oxford, Leeds, Bristol, Newcastle and Cardiff, a long term patient capital injection can completely transform towns and cities. This can have a direct social impact, creating real jobs and supporting real wage increases, whilst creating a virtuous circle by generating income to pay pensioners.
“This is Inclusive Capitalism at its best. We hope our investment today will accelerate regeneration plans for Sunderland, attracting further capital to support the vast potential of this city.”
Chief executive of Sunderland City Council, Patrick Melia, said the investment represented a serious vote of confidence in Sunderland.
He said: “Make no mistake, today’s announcement is the single most significant investment story to come out of Sunderland for decades.
“We are absolutely delighted that the vision we have created for this city is attracting the enthusiasm, support and most importantly financial backing of one of the world’s most significant investors.
“L&G’s backing will allow us to supercharge plans to transform our city centre, creating a magnet destination that will attract more people to live, work and play here. Sunderland has been something of a sleeping giant, but it has awoken, and we’re absolutely determined to ensure this city realises every bit of its vast potential.”
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Councillor Graeme Miller, leader of Sunderland City Council, added: "Today’s announcement is absolutely transformational for Sunderland.
"There can be no doubt this is the result of brave decisions taken by the city’s Labour-led council to demonstrate our own confidence in Riverside Sunderland by first backing the speculative development of THE BEAM, which has been a major catalyst in this fantastic investment decision, and committing to City Hall, an ambitious new public hub for the people of Sunderland.
“We are thrilled that the growing belief we have fostered in this city has attracted the backing of Legal & General, and this is just the start of the journey towards a more healthy, vibrant and dynamic city where everyone has the best possible life chance.
"This council understands business – we know what makes an investible city and we are delivering for Sunderland. Today’s news proves that, once again.”
Council leaders have promised there is more exciting news in the pipeline, as work moves apace on a £1.5bn programme of transformation across Sunderland.
Mr Melia added: “Today is a huge, huge step forward, but there’s more to come.
“We are absolutely determined to create the healthy, dynamic and vibrant city our residents deserve and want to see, and we will keep building on each success, to transform Sunderland and create a place where people can be proud to live, work and do business.”
The news follows a series of investment announcements on Wearside including Ocado’s announced plans to open a base at The Beam, where 300 workers will be joined by second tenant Penshaw View, plus the start of work on the new City Hall development in the second phase of work on the development.
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Other developments include the 120-room Holiday Inn hotel on Keel Square, a 450-seater auditorium in Minster Quarter, a new business centre in the former River Wear Commissioners Building, plus the start of work on Stack Seaburn shipping containers development and a Seaburn pub with rooms from the Inn Collection Group.
The business community welcomed news of the investment as a gamechanger for the region.
Helen Golightly, chief executive of the North East Local Enterprise Partnership (North East LEP), said: “The development of THE BEAM which lies at the heart of this major regeneration site, was supported by grant funding of £10.8m from the Government’s Local Growth Deal.
“Today’s announcement is a fantastic boost for the city of Sunderland, and another very significant demonstration that the North East is an incredibly investible region.”
James Ramsbotham, chief executive of the North East England Chamber of Commerce, said: “We, in the North East, know all of Sunderland’s merits, but to attract investment on this scale today shows that the message is permeating beyond the region.
“We’re thrilled to see yet more positivity surrounding the former Vaux site in Sunderland – it is clear that there is quite a buzz about this part of Sunderland, and that’s translating into major investment announcements that will not only boost the city but will boost the entire region."