A £100m deal paving the way for the creation of thousands of jobs in the biggest investment in Sunderland for decades has been unveiled.
Legal & General has pledged the huge investment sum to build three new commercial buildings at the former Vaux brewery site, comprising up to 300,000sqft of Grade A office space.
The development, led by Sunderland City Council, is aiming to act as a catalyst for wider regeneration, driving regional economic growth and job creation within Sunderland.
Images have been released which reveals a vision of the future for the riverscape, with commercial and housing developments making it almost unrecognisable.
The investment marks the second major spend in the region by Legal & General, coming three years after its £65m commitment into the Newcastle Helix scheme to create much-needed new offices.
It comes eight months after the firm’s chief executive Nigel Wilson - who grew up in County Durham - told The Journal that he wanted to do more to support businesses in the North East and that L&G could invest “hundreds of millions” into the region.
The Wearside investment marks the company’s biggest in the North East to date and will see it back an extensive masterplan for the regeneration of the city centre.
Legal & General said it has identified the ‘vast potential’ it has seen in the council’s plans, with three buildings set to be built at the Vaux site including the new City Hall.
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It is hoped that Legal & General’s vote of confidence will accelerate the transformation of the former Vaux site and have a ripple effect into the city centre, creating a more vibrant High Street.
Mr Wilson 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.”
Council chief executive Patrick Melia said the investment represented a serious vote of confidence in Sunderland, which the council has been leading on since having to take over the Siglion regeneration body when partners Carillion collapsed.
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.
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“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.”
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.
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.
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.”
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Sharon Appleby, head of business operations at Sunderland BID, said: “The city centre is starting to look very different, and there’s no doubt that the incredible amount of investment coming in will start to bear fruit in the coming months and years.
“Today’s announcement of such a vast investment sum shows the level of confidence that is building, not only in the city, but among the investment market, who are seeing the great potential that Sunderland has. We’re delighted and look forward to seeing the city centre district expand as more buildings rise from the ground.”
James Ramsbotham, chief executive of the North East England Chamber of Commerce, said: “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.”
Adam Serfontein, managing director of property investors Hanro Group and chair of Developing Consensus, said: “As part of the reinvestment strategy for The Hanro Group, which was implemented in 2017, we have made four significant acquisitions in Sunderland.
“We have been attracted by the investment in infrastructure, the pragmatic approach and positive attitude of Sunderland City Council, and the scope for rental and capital growth in all sectors. Our commercial portfolio in Sunderland has performed well, and we are very positive about the future.”