More than 1,000 jobs are set to be created through a new North East commercial development in the shadow of train maker Hitachi Rail Europe.
Merchant Park Developments is to invest up to £9m in the first phase of the new development at Merchant Park in Newton Aycliffe, which is set to bring 198 jobs to the area.
The 65-acre park at Aycliffe Business Park is already home to the 30-acre Hitachi Rail Europe train manufacturing facility, and the new addition to the site will eventually comprise three large warehouse units on Millennium Way, helping to create more than 1,000 jobs once all three phases of the site are completed.
Construction has now started on phase one of the development which will take up 52,500 sqft, with planning consent in place for the other two units on the scheme, measuring 89,000 sqft and 126,000 sqft. Funding to support the development has been provided using a seven-figure senior debt package provided by FW Capital, under the North East Commercial Property Investment Fund. which is managed by FW Capital and backed by the North East Combined Authority (NECA).
An incentive has also been provided by NECA to support the immediate financial viability gap for the first phase which includes infrastructure costs for the following two phases. Hall Construction Services is acting as contractor on the scheme and the development is being marketed by letting agents Jonathan Simpson at Connect Property and Dave Cato at CBRE. Chris Dixon and Lesley Telford represented FW Capital.
North East mayor Kim McGuinness said: “I’m delighted to see Merchant Park Developments’ ambitious £9m investment come to life. This project, which will create over 1,000 jobs across its three phases, is a clear demonstration of how targeted financial support can unlock opportunity and drive economic growth. We have used our Commercial Property Investment Fund to make a difference and make sure game-changing projects like this get off the ground. This partnership between the public and private sectors creates jobs and makes communities stronger.”
Geoff Hunton, of Merchant Park Developments, said: “We are delighted with the support we have received from all parties in moving this phase of our development of Merchant Park forward. As well as driving growth in the local economy through the creation of new jobs, we are meeting our aspirations for the Park following the completion of the Hitachi Project in 2015.”
Chris Dixon, senior investment executive at FW Capital, added: “Merchant Park Developments have a fantastic track record led by a highly experienced team of directors. This latest development is championing the potential of the local area, giving businesses access to quality premises and encouraging growth.
"It’s also the first time we’ve been able to combine funds from the North East Commercial Property Investment Fund with the benefits of the incentive provided by the North East Combined Authority. Being a speculative development, we’re also showcasing how the North East Commercial Property Investment Fund can help these types of schemes get started and come to fruition.”
The North East Commercial Property Investment Fund is a £35m fund which provides loans of up to £7m to support new build or refurbished commercial projects. This includes industrial units, distribution facilities or office schemes located in the seven authority areas.
