issue four: autumn 2008

newcastle’s regeneration magazine

Inside: Regeneration round table, inside:inside: Retail Retail heritage conservation, TransportTransport project updates... OuseburnOuseburn WestWest End End GallowgateGallowgate andand much much more… more… Image by Ryder Architecture

Denton Park opens in summer 2009. This substantial redevelopment of a run down 1970s district shopping centre, being undertaken by Morrisons and Rokeby, will provide a new community focus for West Denton and includes a new Morrisons store, a replacement health centre and shop units, together with improvements to an adjoining school and social club. newcastle’s regeneration magazine issue four: autumn 2008

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`jjl\]fli1 05 News Editor Sarah Herbert Xlklde)''/ cover image [email protected] e\nZXjkc\Ëji\^\e\iXk`fedX^Xq`e\ Northumberland Catch up on the latest University regeneration news from Newcastle deputy Editor Kirsty MacAulay [email protected] feature writer Alex Aspinall 08 Markets `jjl\]fli1Xlklde)''/ [email protected] Building a new newcastle’s regeneration magazine The low-down on the economic generation of homes art editor Terry Hawes Yuill Homes has a track record of delivering award-winning partnership schemes across the North East. Imaginative master planning and practical solutions have led to established successful communities combining residential, commercial and community developments. @ej`[\1I\^\e\iXk`feifle[kXYc\# `ej`[\1 _\i`kX^\Zfej\imXk`fe# situation, residential, retail, office [email protected] For more information call 01429 266620 gifa\Zklg[Xk\j%%% or visit www.yuillhomes.co.uk and leisure sectors Production Manager Rachael Schofield [email protected] 11 Round table advertisement Sales Paul Gussar Published by Leading lights in Newcastle’s [email protected] development discuss the city’s office Manager Sue Mapara 189 Lavender Hill London SW11 5TB future [email protected] T: 020 7978 6840 F: 020 7978 6837 Managing Director Toby Fox [email protected] For Newcastle City Council 21 Case study Printed by Tradewinds The reinvigoration of one of the Images Urban Initiatives, Newcastle City Paul Goodwin, sector development officer city’s historic buildings Council, Steve Brock, Gateshead Council [email protected] Subscriptions and Feedback 25 Funding ­www.renaissancenewcastle.com The financial initiatives behind public sector schemes explained

Subscriptions and Feedback ­www.renaissancenewcastle.com 30 Projects © 3Fox International Limited 2008 All material is strictly copyright and all rights are reserved. Reproduction in What is happening with the city’s whole or in part without the written permission of 3Fox International Limited is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at time of going to press, but we accept no major developments ­responsibility for omissions or errors. The views expressed in this magazine are not necessarily those of 3Fox 25 International Limited or Newcastle City Council.

0 Welcome to Newcastle Newcastle is enjoying unprecedented levels of growth and investment. High profile schemes such as Science City, the Discovery Quarter, Newcastle Great Park and Ouseburn Valley are shaping the economic profile of a fast developing and vibrant European City. In the city centre the £170 million redevelopment of the Eldon Square Shopping Centre, is now in its second phase whilst a major retail led mixed use regeneration scheme covering a 33 acre area around East Pilgrim Street is set to become a distinctive new quarter of the City. For further information go to www.renaissancenewcastle.com

0 round-up: What’s new, hot and happening in Newcastle’s regeneration programme

Charlie Falconer, chair of the new City Development Company.

Ian Stratford, chief executive, Newcastle City Council says: We know, through many years of partnership work, how the private sector has the right skills to drive forward the local economy. That’s why we’re taking the bold step of forming the new private-sector led CDC. It adds to my confidence about the city, and to why I’m not predicting credit crunch doom. Newcastle is well placed to buck the trend. We have the cranes, Bridging the city the constantly evolving skyline, the cultural renaissance, the A new city development company is set on this partnership. It’s a challenge, but I’m sure explosion in hotel provision, and to transform Newcastle and Gateshead, via a we can produce results.” the growth of our professional strategic programme of economic and physical John Rundle, on secondment from government services sector, especially around development overseeing the whole metropolitan office One North East, is heading the team setting the quayside. area. NewcastleGateshead CDC, backed by up the new company. He’s confident that the CDC But most of all we have Gateshead Council, Newcastle City Council and is the right vehicle to drive forward the pace huge city centre sites left for One NorthEast, will be an independent business- and quality of economic growth on Tyneside. development, and an array of led body responsible for economic master “This CDC will be the first in the country commercially attractive, and planning, coordinating and delivering strategic operating across two local authority areas,” solidly backed, investment economic and regeneration projects, targeting he says. “Rather than adding another layer to propositions, the two combining investment and winning new business. government, we are streamlining our approach together in, for example, the 8ha Former housing minister and Lord Chancellor to smooth the path for investors, developers city centre Science Central site Charlie Falconer will chair the organisation. and businesses, establishing single points of around the old Newcastle Brown “Gateshead and Newcastle have both come so contact and keeping red tape to a minimum. Our brewery site (see p32). far over the past 10 years,” said Falconer. “You objective is to make Newcastle and Gateshead We have a lower debt-to- can see it with your own eyes and there are a more attractive place for both long-term income ratio than the credit- great developments in prospect. I really want to investment and economic growth. The best way stretched South East, and shifts achieve something for Gateshead and Newcastle. to achieve this is by combining our strengths and in house prices will – with less They are committed to working together and the resources and focusing our ideas and efforts on a far to fall – have a smaller effect. CDC can deliver real progress for the area based common goal.” Our quality retail market space is more than holding its own, and the office market is steady if not David Slater the regional economy, and will challenge and huge opportunity buoyant. Newcastle City Council greatly boost how the city and to make this fantastic city an Newcastle is a city driving director of environment and the region are perceived in the even greater place to live, work forward without compromise regeneration, who joined in wider world. and visit. I love it, as I know and demanding the best. So, spring 2008, comments: As physical developments others do, and if you have ambitions for to ensure all development have a very long lifecycle, we am looking quality, lasting investments and benefits the city, we have to be have to continue to take a long- forward developments – and if you want clear what our priorities are, so term view, and not become too to making an environment to do business in we can have a shared view on tied up with short-term changes our – come and have a fresh look at what’s possible, the timescale, in the economy which, while real dreams a Newcastle. order, and at what cost. and happening, shouldn’t derail reality. Success will have a huge our long-term plans. effect on both residents and All this presents both a huge

0 round-up continued

Local heroes Local architect practice Mosedale Gillatt wiped the board at the Lord Mayor’s Design Awards for 2007, winning four of the six categories. MGA, set up in 1995, won the special regeneration award for two projects, Woods Pottery and Northern Print (above), both in Ouseburn, which also won individual awards in the conservation/refurbishment category and small-scale category. The practice’s Grosvenor Court project in Jesmond also won the housing award. MGA director Jenny Gillatt is delighted. “To be recognised for our contribution to the city’s regeneration is a great achievement for us,” she says, “and a further reinforcement of our continued work and expertise in this area.” Another local company to be recognised for its regeneration efforts is Silverlink, whose Trinity Gardens scheme on the Quayside (right) won the Civic Trust award. The scheme was praised as ‘a good example of the creative regeneration of an underused and overgrown site. Easy pedestrian access has increased footfall through the area, bringing new life and an increased feeling of security’. The mixed-use project, completed in 2005, has been credited with improving the bankside, with new seating and access routes. The artwork at the centre of the public realm won the 2006 Marsh award for public sculpture.

0 Pedal power Under the arches In a bid to encourage green Plans for the refurbishment of travel the council has installed 45 new the railway arches on Forth Street bike racks across the city and invested will transform the area to the south £272,000 in cycle routes, with a mix of Central Station. Network Rail’s of off-road paths and dedicated cycle property division Spacia hopes to lanes. New maps detailing city cycle put new glass fronts on the units, routes and bike racks, alongside a which range in size from 27sq m to magazine ‘Get cycling in Newcastle’, 123sq m, hopefully attracting cafés, will also encourage people to leave art shops and architects offices to the their cars at home and get on their area. The project is due for completion bikes and ride. by September 2008.

Leading light Science city starts Traditional Chinese style Demolition on the former lanterns now light the way along brewery site, that will form the central Stowell Street in the heart of focus of Newcastle’s Science City Newcastle’s Chinatown. The bright red status, is now complete. The preferred lanterns provide a cheery and option for the EDAW masterplan will be colourful enhancement to the street’s announced by the end of the summer. cultural identity. Further plans for Public consultation will then be renovation in the area, home to the undertaken to determine any further Chinese community since the early comments before the final copy of the 1970s, include lighting the ceremonial masterplan is published (for more on arch at the entrance to Chinatown. the brewery site see page 32).

Good neighbours The revitalised Grainger town in the heart of Newcastle city centre won the Academy of Urbanism’s ‘great neighbourhood’ award 2008, beating fellow finalists of Soho, London, and Temple Bar, Dublin. The Georgian quarter of Newcastle has been extensively upgraded since the Grainger Town project was set up in 1997, benefiting from £120 million of regeneration. Although that project is now complete, some other individual conservation schemes in Grainger Town, within Newcastle’s Central Conservation Area, are still ongoing. n

0

feature markets Vital statistics Newcastle’s residential, commercial and retail facts and figures, from house prices to rental yields, and forecasts of what’s to come. By David Gray.

Economic situation Residential market Newcastle’s economic health has not The local housing market has not schemes at Felling, St James Village and completely escaped the chill that has contracted as much as many other Walker Riverside, with the latter already been affecting the whole country parts of the country, although trading under construction. The current target is since autumn 2007, not least because conditions are significantly more for 860 new homes by end-2011, plus Northern Rock, based in Gosforth, is difficult than up to mid-2007. Figures the improvement of a further 2,360 a major local employer. But the city from the Land Registry show the homes across the city. Most of the new With amplecontinues green to grow and createspace wealth andaverage stunning price of a house in Newcastlepanoramic housing will be built by the private from its increasingly diversified in March 2008 was £143,000, up sector, but Cockbain notes that the views, theeconomy. edge-of-city-centre More than 7,000 new service on the £139,700 site ofhas a year earlier.real andrecent three-star award to Newcastle’s more wordsjobs were needed created in 2007, withto strong fill Detachedhere houses are selling for an housing ALMO (Your Homes Newcastle) increases in distribution and tourism- average £313,900, semi-detached opens the way to funding for new related employment, compensating for for £154,850, terraced for £144,400 council homes within the next two years. any fall in the financial sector. and flats/maisonettes for £114,000. The earnings gap continues to close, Although sales volumes are well and gross weekly pay exceeded £410 down, the prices in all these property at the end of 2007. Unemployment categories are still holding up. Detached house remains higher than the national Housing completions in 2008-2009 average price average (Job-Seekers Allowance are expected to be around 700 units, claimants made up 3.3% of the according to Peter Cockbain, senior workforce in March 2008) especially for planning policy officer at Newcastle £313,900 men, but the rate remains hugely lower Council. This compares with 845 units semi-detached than during the blighted years of the in 2007-2008, and 966 in 2005- 1980s and 1990s. 2006, but inevitably reflects the market £154,850 Perhaps the best evidence of downturn, which according to Cockbain, terraced Newcastle’s continuing revival is the became particularly evident at the start rise in self-employment and business of 2008 with difficult conditions likely £144,400 start-ups. By the end of 2007, the self- to continue into 2009. flats/maisonettes employed made up 6.7% of the local The private market will remain static workforce, compared to less than 5% at best, but he is still very optimistic on £114,000 only two years before. the outlook for public-funded housing. The innovative local asset- backed vehicle for Scotswood will be established by this autumn to deliver more than 1,800 new homes over the Grade A coming decade. Barratt, Persimmon and Grainger were chosen in March as rents the shortlisted private sector partners for this £450 million project. Then increased there is increased Government funding of £95 million for housing market renewal during 2008-2011, including

10% More than 7,000 during 2007 new jobs in services created in 2007

08 renaissance

The target is for

Office market Retail and leisure market The city still has a shortage of grade A Retail rents remain at 2007 levels and 860 accommodation, which is made worse are not expected to move much during new homes by end by the relatively small number of new the next two years, according to completions made in 2007. According AtisReal and Colliers. While the Metro to King Sturge, the city centre in early Centre in Gateshead achieves £350 2008 had 60,000sq ft (5,400sq m) per sq ft and the best grade A space of grade A space and 450,000sq ft in Newcastle’s Northumberland Street 2011 (42,000sq m) of secondary space is available at £320 per sq ft, outlying available, while the out-of-town market areas are at £180-200 or less. plus the improvement offered 950,000sq ft (88,000sq m). Newcastle has made itself Demand remained steady throughout the shopping and entertainment of a further 2007, and totalled 433,000sq ft capital of the North East with major (40,000sq m) across the city. improvements on the way. The In 2007 grade A rents rose 10% to £200 million Downing Plaza mixed- £22 per sq ft, with secondary space use project has planning consent for 2,360 remaining at £17-18 per sq ft. Simon 60,000sq ft (5,600sq m) of retail, Taylor, King Sturge Newcastle, expects commercial and hotel space. Eldon homes across the city that prices of £24 per sq ft will be Square, jointly owned by Newcastle achieved this year, but “limited new Council and Capital Shopping Centres, development in Newcastle city centre will complete its refurbishment and may tempt occupiers to acquire at 450,000sq ft (42,000sq m) extension Gateshead Quays or hold over until by the end of 2010. This crucial 2009 when new schemes will replenish development has already attracted the city-centre market”. These include Debenhams and Waitrose as new 35,000sq ft (3,200sq m) at East tenants and is almost fully pre-let. The East Pilgrim Quay 5 and a further project of Meanwhile, Newcastle Council Street scheme will add 45,000sq ft (4,200sq m) at Forth expects planning applications for the Banks. Meanwhile, Gateshead Quays huge East Pilgrim Street scheme to be 74,000sq m will see 180,000sq ft (16,500sq m) put in before the end of this year. This on the market by end-2008, including retail-led project by Brookfield Europe of retail space by 2016 developments by Terrace Hill, City & and Aldersgate aims to transform Northern and UK Land Estates. a run-down 17ha site into a lively What is clear is the continuing vitality new hub for the city centre. Success of the Newcastle commercial market in completing this complicated despite the depressed national scene. development would give Newcastle A flurry of recent purchases include an extra 800,000sq ft (74,000sq m) Gainsborough House by Cushman & of retail space by 2016 and cement Wakefield, Maybrook House by City & the city’s reputation as the region’s Northern and Tritax Securities’ £75 shopping mecca. n million investment in new buildings at Quorum Business Park. Planning Gateshead Quays will see permission was given to Centreland for its £38 million redevelopment of Westgate House in the city centre. on the market by end- Recent refurbishments in the centre 180,000sq ft such as Cale Cross and Cathedral Square 2008, including developments by Terrace Hill, have found occupiers very quickly and City & Northern and UK Land Estates achieved up to £18 per sq ft.

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Talking points Just how is Newcastle’s regeneration coming along? Some of the city’s big names in the world of development came together to discuss how they see Newcastle evolving.

Adrian Stanley Mark Massey (MM) Peter Buchan (PB) PR: Given the current climate, what are your views of (Ast) Senior partner, Chief executive, Ryder development prospects in Newcastle? Are you looking more Senior office partner, IDPartnership- HKS towards office and commercial and away from residential? Is Eversheds northern the development climate more difficult now than a year ago? David Furniss (DF) Adam Serfontein Kevan Carrick (KC) Director, AtisReal (AS) Partner, JK Property KC: The supply of money is going to be the problem. What Newcastle Managing director, Consultants happens in the financial markets is really going to dictate what Hanro Group happens in our industry and I think it’s really too early to make a judgement. , Bill Lynn (BL) Chris Pearson (CP) Chair: Paul BL: Chief executive, Partner, Gavin Black Rubenstein (PR) Demand is still there, particularly in the office, hotel and Storeys:ssp and Partners Assistant chief leisure markets. But the residential market, particularly flats, is executive, policy, struggling badly. Newcastle City AS: But it’s interesting that the rental market is relatively strong. Council BL: Is that a consequence of people’s uncertainty in committing to buy? And that they’d rather rent? AS: I think there is a social shift towards renting, rather than outright ownership. Also, the registered social landlord (RSL) market is quite bullish about development, and we’re beginning to see major RSLs become developers and lead the way. BL: I think a lot will depend upon supply of money and whether people can get the finance to do what they want to do. Getting it is very expensive at the moment. AS: Also, if we’re buying when everyone else is buying and selling when everyone else is selling, we can talk ourselves into a recession and talk it longer. We’re buying heavily at the moment on the basis that I don’t think it’s going to get significantly worse and the upside potential is greater than the downside risk. PB: We’re looking at the long-term, where investors may be interested in one area of the economy, perhaps in asset vehicle models or strategic financing. If you can hook people in for the longer term, as the market changes, then you can change priorities with them. ➺

11 AS: The perverse thing is that undertake a development maybe 30% to agenda adds costs to development. The occupational demand is holding up. The 40% pre-let and ‘spec’ the rest. We’re now only place that can impact is on residual commercial and office side is very strong a bit nervous because the cost of funds value. I’m involved in a number of – there’s a lot of unsatisfied demand threatens the profit. projects where the residual land value is out there. Not for investors but for CP: The investment market has changed falling and landowners are just taking indigenous companies. I wonder if rental so fundamentally, nationally, that it off the market. Unpicking that cycle levels in Newcastle now have reached a developers’ appraisals aren’t going to is going to be as difficult as the funding point to protect us a bit… work, which is going to make supply a packages become looser. KC: We’re above the line as to what makes real problem. I don’t think the region AS: And the regulations are getting worse a development viable, but it’s pretty necessarily appreciates how different the and having a significant cost, and that’s fragile. It’s taken a long time to get there property market is, and it’s going to get not going away either. and we’ve been very fortunate that the worse before it gets better. DF: The residential development sector supply and demand of new space has MM: As well as oversupply, there’s will have to cope with additional costs been very well balanced over a number of everything that we saw in the 1990s: of complying with increasingly stringent years. That’s a good sign for the future, so large firms of architects and developers sustainability demands. Couple this long as occupier demand is maintained. laying off staff and generally shutting up with increased funding costs, and high AS: Improvement in the headline rent shop. I think we should prepare for the demand for affordable housing, all of has made the position easier. But spec worst so we can maybe cope with what which impact on land value, and you development is going to become really comes. have an environment where the supply of windy. Quite a few developers, ourselves DF: It’s not just cost of funds either. It’s land is going to diminish at a time when included, two or three years ago would the build cost too, as the sustainability there is a real need to develop more.

12 round table feature

PR: What do you think of the neutral by 2016 is an infrastructure issue. We’ve been very sustainability issue? Our elected There’s a limit to what you can do on a members are extremely enthusiastic building-by-building basis. We need to fortunate. Supply about it, setting highest possible be thinking radically differently about standards, carbon-neutral housing etc. how we deal with the pumping of energy and demand of Is it realistic? around the system and how it’s generated. DF: I think it has to be understood ASt: We’re seeing increasingly more new space has outside the narrow context of energy interesting structures, community been well balanced efficiency. It’s actually about a whole life involvement, recycling, etc, but it’s also cycle for property. about transport, shared car systems and over a number of KC: We have to be careful. In the so on. It’s about how you use the building North East, to maintain and attract over the next 15 to 25 years. years. A good sign occupier demand, you’ve got to look at PR: You could argue that there has been competitors, and their quality of design a bit of a fallow period in Newcastle over for the future and accommodation, and get the balance the past three or four years, but there is right between what we think the market the potential for large scale opportunity needs, what they’re prepared to pay for, over the next few years, in the western and how we can produce that in relation side of the city centre around the former to completed developments. brewery sites, around the area west of PB: There’s a public sector role, because Forth Banks, the Stephenson Quarter ensuring all development is carbon- and East Pilgrim Street. This is obviously ➺

13 Haymarket Hub Newcastle upon Tyne Start on site May 2007 DevelopedA Joint Development by Closegate by Closegate, Tolent and 42nd Street Realty Ltd. closegate

Alderman Fenwick's House, 98 -100 Pilgrim Street, Newcastle upon Tyne NE1 6SQ 0191 211 2700 [email protected] round table feature

What’s exciting is the developments planned now are such big schemes they’re actually capable of creating their own area of Newcastle

very exciting, but how do we balance this But we do need a radical change from conditions, a percentage for art… and it’s with the risk of oversupply? the lack of activity over the last few years, all coming at the same time. DF: Well I think the question is: Are to one of a ‘can-do attitude’ for business MM: The sustainability expenses in the you excited or wary at the scale of in the planning context from the city market place can be nonsensical. Should development? I think both in equal council. we be thinking ‘sustainable housing, or measure. PB: The key word that keeps cropping no housing at all’? What do we really Excited because speculative up is quality, with a slight concern that need in terms of the commercial market, development is now viable in the city, maybe, when money’s tight, we can’t the housing market, and infrastructure which is actually what it takes to be afford to build well enough. In setting expenditure? sustainable in market terms. And we the bar for that the public sector has a PR: All these issues are debated daily in need more high-quality accommodation huge role. the council. The point is an important across all sectors. We have missed some one about being keen to raise the bar opportunities in the past few years, and PR: Why haven’t we achieved that level on quality – but in an affordable and it took the industry time to get confident of quality in the past? commercially presentable way. Often that there’s a sustainable modern AS: The rental levels just haven’t been the market in Newcastle has been driven economy driving the built environment able to justify it. by indigenous companies or relocations here. But wary because if funding relaxes KC: I think there’s that, but I also think rather than by direct investment or and everything comes in a rush, we might there’s been an attitude of compromise. inward investment. have an oversupply. The city deserves iconic buildings, to AS: The original idea for development of Frankly, unless we have these projects make a statement that you’ve arrived in the Quayside was to attract some global/ teed up and ready to go at the next cycle, Newcastle. We need the leadership of the national names to Newcastle. What we’ll miss it again – so we have got to be city, through planning and regeneration, actually happened is that it catered for ready. We have to take the risk. to establish that, while being careful the growth of local companies. That’s not The city needs to be pro-active and that we don’t price ourselves out of the a bad thing – some of the regional law help the private sector prep sites and get market. firms massively increased their turnover consents ready to go for the next time. PR: The point, presumably, is that it’s all once they had the capacity to move and KC: The market has worked extremely very well to insist on that when you’ve grow. well in Newcastle over the years and got large grants on the go. But, when What’s exciting is that the we’ve never had a significant oversupply you’re doing that on a commercial basis developments planned now are such of space, as the judgement of developers, – then it’s challenging. big schemes, they’re actually capable of and their advisors and funders, has AS: Yes, something’s got to give. You’ve creating their own area of Newcastle, been pretty good in pacing the flow of got pressure on occupational demand, which I think has got the capacity to development, and that’s probably going cost of funds rising, building regulations, attract new investors. to continue. 10% renewable energy planning KC: What we’re seeing through Northern ➺

15 feature round table

Newcastle is a different city than it was 10 years ago. It’s now in colour and it was in black and white

Way and One Northeast is the approach should be able to drive forward one of that you’re not trying to be all things to developing in clusters, which focuses the region’s strongest clusters. to all men. How the CDC works as a the market to a particular sector, creating MM: Just one of those companies that delivering organisation is crucial as the a much better chance of attracting you mentioned, I think has a £100 link between the public and private investment into the industry. million turnover, and puts £36 million sector. AS: We’ve also got big areas where you into our local economy each year. Maybe DF: I might have missed something, but can create your individual identity. it’s time to re-focus in these areas which I don’t really know what the brief is, what Although capital has fallen in 2007 by historically there’s been great, great it’s going to do, what assets it’s going to 10% and the forecast is for another drop success in. use, what powers it’s going to have. Is it this year, we’re playing a long game here, about regeneration, or enabling private so it’s actually not as bad as all that. PR: This brings me onto the third sector redevelopment? Getting that clarity PB: Historically we have appealed to question which is around the city into the marketplace on this would be the indigenous companies and I think it’s development company. The CDC will first thing that I would do. right that we need to get out there and focus on the missing piece of the PR: I’m conscious that maybe we need start bringing in much more investment. picture of the Newcastle/Gateshead to do a bit more to explain the role. It’s To do that we need to be doing a hell collaboration over the past eight or about raising the bar of quality, providing of a lot more as a region to get our act nine years – the economy. It will pro- focus, accelerating delivery, being a focal together and get out there and get the actively go out to the marketplace to sell point to attract investment in the kind message out. Newcastle/Gateshead, attract finance, of pro-active way that perhaps we haven’t DF: It’s not just about property either. and attract companies. Is that the right done in the past. The critical thing as far as investors are thing to do? What should our early To look at funding direct investment concerned is high quality, well-educated priorities be? What are the risks? and global opportunities which nobody’s people who can do the job – human PB: I find it very exciting. To me the really done for Newcastle and Gateshead capacity. priority is just to be out there – to be seen in recent years. So in many ways, a lot of PB: Human capital is critical to to be doing something quick. the things that have been said around this economic development. For example I KC: I think it’s the most important table – that’s exactly what the CDC is know that there are advance talks going decision for the city and the region for there to do. Is there a risk that the public on between [oil and gas companies] the next 25 to 30 years. We can learn sector gets in the way of development, Duco, Wellstream and so on. The from what development corporations either deliberately or accidentally, by universities and colleges are looking at and URC’s have or have not done. I having lots of organisations, and you how to supply a better flow of skilled think, however, that there needs to be a don’t quite know who to go to? Does people, and if we can help with land and very clear business plan based on some the public sector still need to get its act property.... good research on economic, marketing together a bit more? That combination of physical and and development strategy, as well as AS: There’s a positive and a negative human is a classic example of where we some carefully chosen deliverables, so here. The positive is that the Science ➺

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At Newcastle Science City we believe that the economic benefits of science should be felt by as many people as possible across the city. That’s why we’re actively developing new science-based businesses, attracting investment from all over the world and creating new jobs. At the former Scottish & Newcastle Brewery, an iconic site in the centre of the city, we’re developing a revolutionary hub where scientists and researchers can mix with business people and the community. Another of our exciting projects is the world’s first Campus for Ageing & Vitality based at the General Hospital. The campus builds on the city’s reputation for scientific excellence by providing the very latest medical and research facilities. It’s all part of our aim to regenerate the region through science. The future is happening right here in Newcastle Science City. Science is the future. The future is here. A partnership between

www.newcastlesciencecity.com St Silas Church & Housing, Byker.

St Silas Church, which is Grade II Listed, was built in the heart of at the West end are as simple as possible so that they do not the shipbuilding community of Byker on the corner of Clifford distract from the splendour of the Nave or attempt to imitate it. Street and Burton Street in 1885/1886 to serve a Parish of 15,000 Before construction started on the housing a study was souls. By 2002 the Parish had declined to 4,500 souls and the undertaken of the noise and vibration levels in the area and a congregation to about 25. The terraced streets which once specification developed from it to achieve a noise reduction surrounded the Church had been demolished; a new elevated greater than the standards required in the Building Regulations. section of the Metro railway and the Shields Road by-pass separated the Church from the new community in the Byker Wall. The Church’s future looked unsustainable when the Parish and Byker Bridge Housing Association (BBHA) decided to collaborate to develop a brief for the Parish’s Architect Anthony Keith Architects. The Church’s objectives were to increase involvement with the surrounding community, make the most of its resources to cut its running costs and create an income for it. BBHA needed new head offices and land for housing. They decided to lease a third of the Church to Byker Bridge Housing Association for their head offices. They wanted to create a new Worship area and a Church Hall with new kitchen and toilets. The old Church Hall, which was a late addition to the Church, would be demolished to restore the original concept and allow the land between the Church and the Metro line to be redeveloped as housing for single homeless people. The existing High Altar was to be removed and the floor level of the Nave maintained right through, to provide a less hierarchical and more flexible Worship space and a level approach for people with View of the new courtyard to the south of the Church. disabilities. New heating and lighting was required together with a PA and induction loop system. The housing scheme which is made up of 19 bedsits and a Wardens bungalow turns its back on the noisy railway and the road and is arranged around a courtyard looking towards the Church. It is at its highest closest to the Metro on the South East side and is at its lowest on the West to allow the maximum amount of sunlight into the courtyard. It also acts as a sound barrier to reduce the noise disturbance in the Church from the by-pass and railway, services can now be held undisturbed by passing trains. This scheme won the Lord Mayors Design Award for Refurbishment & Conservation in 2005, and the RICS Renaissance Award for Community Benefit in 2006. The scheme was also short listed for the National RICS awards in 2006 and received a Special Mention award at the RIBA Hadrian Awards in 2007. The housing has proved very successful particularly with the residents, some stating that the housing and community have changed their lives. The Church has also seen an increase in the congregation and a welcome return of weddings and christenings being held at the Church. The new Church hall is also proving View to the West end of the Church showing the new full height glazed very popular and is usually fully booked providing an income for screen and new kitchen and toilet accommodation. the Church.

Inside the Church a mezzanine floor was inserted in the North Aisle to double the floor area available to BBHA. This had to be designed to be reversible with minimum impact on the existing structure. The timber coffered ceiling was left exposed as a feature in the offices. The new partition wall between the Church and the new offices includes arched fire resisting windows to remind everyone using the building that it is still a place of Worship. Anthony Keith Architects Ltd. The division between the new Church Hall and the new Worship area is frameless glass to maintain the overall impression 19 Lansdowne Terrace, Gosforth, Newcastle upon Tyne, NE3 1HP of the Nave as one space. The new kitchens and toilets inserted T: 0191 213 0133 F: 0191 213 5050 E: [email protected] W: www.akarchitects.net

Contractor: Dorin Construction Services Engineers: J Humphrey & Partners Quantity Surveyor: Todd Milburn Partnership Hadrian House, Beaminster Way East, Prosperous House, Ecclestone Close, 150 New Bridge Street, Newcastle upon Tyne, NE3 2ER Newcastle upon Tyne, NE27 0RX Newcastle upon Tyne, NE1 2TE T: 0191 214 0360 F: 0191 214 0578 T: 0191 268 1332 F: 0191 268 5851 T: 0191 230 2100 F: 0191 230 2101 round table feature

City wouldn’t have been put together control aspects require, as against what head of steam now, better than most without the public sector’s involvement. the leadership wants. The CDC could parts of the UK. The area where there needs to be more establish a very clear delivery vehicle in PB: The fact that we’re meeting to have co-ordination is in the processing of relation to strategies and articulate it so this discussion together is a huge change. planning applications and planning that both the market and public sector We can begin to develop a shared agenda conditions which are quite tricky at the know what is expected of them. that we can all buy into. moment. CP: When we work outside the region, ASt: Confidence is crucial. One of PB: I think the CDC needs to be that it’s very interesting how councils in the biggest changes I’ve seen is self- first point of call and very clear about other cities and regions respond. In one confidence in the region and that must be what it’s doing, because if it is just example, our clients had a slight problem, maintained. another agency it adds to the confusion. and the council’s approach was how to DF: I have clients and colleagues who If that happens, we’re completely dead in get around it. My impression when I ring come to the city from all over the UK, the water. Newcastle council is that it hasn’t always and Europe, and they are excited by the DF: Co-ordination is absolutely critical taken that approach. city. They see a very interesting, exciting from the public sector point of view. place. So I think the external perception From our side of the table, there PR: We’ve heard that and changes have of what is possible in the North East seems to have been an over-emphasis been made. It’s also true that we’re is very different and I think it’s down on development control, rather than trying to realign resources to be delivery to the fact that we now seem to have enablement. focused. We have to deliver schemes the confidence: we’ve got an economy Also, I think there needs to be worth £400-500 million and we haven’t which is much broader based, and it can recognition that the lifecycle of property put the resources in place to enable that support financial services and the service is long, so the environment we’re working delivery. That can’t go on. sector. But it really is just the start. in has to be flexible enough to allow for A final question about change, but MM: Isn’t it also about finding our own a change over time, within any given particularly about what we can learn solutions? Taking this opportunity project. Focusing on one thing at the about change over the recent past. to become the exemplar we’ve always start and expecting that to be the thing PB: Change has been phenomenal. wanted to be. We pull ourselves up to come out at the end is the wrong thing AS: Newcastle is a different city than it by our bootstraps – if it’ll work in the to do. was 10 years ago. At the risk of sounding North East, it will work everywhere and PB: So it’s about working it through naff, it’s a city that’s now in colour and it we should not only be sorting our own together? was in black and white. problems out, but going and sorting KC: I’m very encouraged by what’s BL: We mustn’t let the momentum drop. other peoples’ out. n emerging. There’s some exciting stuff. It’s taken a long time to get to where We’ve had a challenge over the past few we are. We’ve got to be brave and keep years on delivery because of a dichotomy going. The support of the local authority between what the planning development is absolutely paramount. We’ve got a

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Fire escape Gutted by fires, and teetering on collapse, it looked like the end for this historic bonded warehouse. But, as Pamela Buxton explains, new-build elements, inside and

Top: Hanover Mills, out, mean it lives on. after its final fire. Above and right: West One, the new-build component of the scheme. continued overleaf ➺

21 In March 2006, a huge fire brought Yet with its arched windows, large loading bay parts of central Newcastle to a standstill. Clouds entrances and imposing brick walls, the building still of smoke hung over the Quayside district as flames had plenty of character and was a decent candidate shot out of the city’s historic bonded warehouse, for regeneration. Napper Architects was able to draw a building well-known to all locals, thanks to its up a conversion scheme to create 48 apartments in prominent position in the Tyne Gorge close to the the old east end of the warehouse, which rises up to Queen Elizabeth Bridge. seven storeys, and a further 86 in a substantial new The damage was so extensive that the city council addition next to the original structure. issued a dangerous building order and recommended Imagine Napper and Zirca’s dismay, then, when that it be demolished. Yet little more than two the 2006 fire struck just before the project started years later, in spring 2008, the building has been on site. “It was massively ablaze and the whole of transformed into smart city-centre apartments and is Newcastle was covered with smoke,” recalls Napper now fully sold, with sales boosted enormously by the associate Mark Bowman. “It destroyed everything historic nature of the grade II-listed warehouse, the that we’d have retained – there were huge timber Above: The West One part of the site, before last bonded warehouses in the city to be converted. numbers on the outside but they all burnt and work started. The developer who pulled off this unlikely fell off. It was completely gutted. All we had was a turnaround is Mandale, working in collaboration brickwork shell and lots of charred timbers.” with local practice Napper Architects. Napper has It was estimated that it would take £1 million been involved in the project for six years, and was just to stabilise the devastated structure. Undeterred, initially commissioned by the previous developer Mandale stepped in, confident that the appeal of Zirca, which had secured planning permission for a new apartments in a historic building would be conversion scheme but lost interest after the last of worth the far greater effort involved in retaining the several serious fires, and sold the site to Mandale. structure. When Napper first got involved, the 19th century “We’ll have a go at anything,” says Mandale’s building was in a poor state after decades of disuse residential sales commercial negotiator Simon and damage from earlier fires, which had destroyed Ede. “The hardest part was the planning – how we the western part of the substantial brick building. were going to make the financial part work for the Subsequent exposure to the elements had wrought amount of apartments we could get in.” further damage, and the failure of many proposed “It would have been considerably easier to start schemes in the 80s and 90s to materialise, meant it again on the site. But it would have taken a lot was left to moulder. longer to get the revised planning permission,” adds

Large brick and Large in nine fires Two Zirca Developer guts Major fire bills of Facing developer New starts Work on Mills Hanover

1844 built timber bonded warehouse industrial in the then thriving part a now of Newcastle, conservation area. 1997 part western the destroy weeks of the warehouse. 2001 consent planning secures to convert warehouse use. residential 2006 Newcastle building. remaining City issues a dangerous Council Zirca and gives order building to make it safe. 28 days 2006 pulls out. Zirca building, 2006 Mandale takes on the project. 2007 site to convert the building to apartments and build an block. new adjacent 2008 and fully sold. completed £1 million just to stabilise the Hanover Mills Hanover timeline

1844 1997 March 2006

22 hanover mills case study

Bowman. “It’s a big chunk of brickwork. Everyone West One. There are no through links, with access knows it because it’s been there so long. It’d have via three separate staircase and lift cores. The new been a shame to have lost it.” building has a red brick plinth to complement its Construction began less than a year later. To neighbour but there is no misguided attempt to salvage what was left of the building, the design team make it appear as old as the original warehouse shored up the structure with scaffolding and piled – instead it has bright render above and projecting foundations for a new steel-framed building within balconies in contrast with the warehouse’s Juliet the existing warehouse walls. These original walls balconies. were then tied to the new ones. The result is that With the residential buildings occupying all externally at least, as much of the character of the of the warehouse site, providing parking for the building as possible was preserved, while internally, apartments was a key issue. Mandale’s solution was it’s a brand new building with no hint of the former to locate it in its nearby Forth Banks development warehouse character. just on the other side of Queen Elizabeth Bridge, in The original There are, however plenty of steel columns from a 15-storey tower with 12 floors of residential, three the new frame visible within the apartments and the floors of offices, and a further block of 215 parking facade that ground floor Chinese restaurant: some are exposed, spaces and more offices. was so nearly while others are boxed back to internal walls to The total development cost of Hanover Mills resemble piers. Considerable external repairs had and Forth Banks has been £30 million. But it was lost in the fire to be carried out to the brickwork, as much of the a wise investment. Mandale has been rewarded for original lime mortar had fallen out and needed its boldness and its investment with a high-profile has turned replacing. scheme, which sold out ahead of the property market out to be a Apartments are arranged around a top-lit atrium wobble. Zirca, and other developers who flirted with in the middle of the retained building, accessed at regenerating the site, must be kicking themselves. fantastic level five of the seven storeys because of the steeply “They’ve missed a great opportunity,” says selling point sloping site. Because of the very deep plan of the Mandale’s Ede, adding that the original façade that warehouse, some of the one- and two-bed flats are was so nearly lost in the fire and its aftermath turned very generously sized, at up to 112sq m (1,215sq ft) out in the end to be a “fantastic selling point”. and 195sq m (2,100sq ft) respectively, although this Napper’s Bowman is incredibly proud that the includes areas with little natural light that are best practice was able to play its part in rehabilitating used as storage. Maximising light was a big issue for one of the oldest buildings in Newcastle’s Quayside, the architects – some of the duplexes use mezzanines and giving it the means to extend its occupied use, to get light down into the rear of the lower level. something that seemed so unlikely just a few years Next to the listed structure is an eight-storey new ago: “It’s there and occupied. And it will be there for build component, including a penthouse, known as a long time to come.” n

Below: The eight- storey new-build component is designed with modern, clean lines. Large brick and Large in nine fires Two Zirca Developer guts Major fire bills of Facing developer New starts Work on Mills Hanover

1844 built timber bonded warehouse industrial in the then thriving part a now of Newcastle, conservation area. 1997 part western the destroy weeks of the warehouse. 2001 consent planning secures to convert warehouse use. residential 2006 Newcastle building. remaining City issues a dangerous Council Zirca and gives order building to make it safe. 28 days 2006 pulls out. Zirca building, 2006 Mandale takes on the project. 2007 site to convert the building to apartments and build an block. new adjacent 2008 and fully sold. completed £1 million just to stabilise the

2007 2008

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11 REGENERATION DELIVERY VEHICLES

Client: Trading as: Network Rail Solum British Waterways ISIS East Midlands RDA & EP Blueprint One NorthEast RDA Buildings for Business NorthWest RDA Space NorthWest Advantage W Midlands RDA PxP

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Leeds / Newcastle Jon Bull Diamond 0113 235 5274 London Andrew Ludiman 0207 493 4933 funding feature

Capital ideas PPP, PFI, LIFT… There have never been more options for funding public sector schemes. But how do they all work? And how is Newcastle leading the way? Julie Mackintosh investigates.

(PPP), it was formed between Newcastle and North Tyneside councils, their primary care trusts, the Department of Health and developer Robertson Capital Projects. The LIFT is developing four customer service centres in the Newcastle area, offering a wide range of amenities including GP surgeries, dentists, mental health practitioners, libraries and council benefits and social services teams, to name just a few. LIFTs were originally conceived by the Department of Health as a vehicle for delivering primary healthcare provision. But the model – based on private sector investment, locating similar services together and economies of scale – fitted with Newcastle City Council’s even wider plans. It became one of the first authorities in the country to pilot the scheme after its In the brave NEW world of public-private conception in 2001. partnerships, in their many forms, on top of all the other “It’s about getting services to the public in a joined up, potential investment models, council funding is more complex efficient way,” says Woods. “By developing a number of and arguably more effective than it has ever been before. relatively small schemes concurrently you can secure a better “It’s about finding the most appropriate way of financing a price and only have to go through the tendering process once.” scheme depending on its size and scale,” explains Paul Woods, LIFT also meets with the approval of the National Audit Newcastle City Council and Tyne and Wear Passenger Transport Office. The government watchdog said: “LIFT offers many Authority treasurer. “That could be through traditional capital advantages to the local health economy, while its structure fits investment or by using another investment vehicle. with government policy to use private sector investment where “In order to secure the investment needed to achieve our feasible. LIFT schemes are a partnership – the private sector objectives we have taken full advantage of the options available provides a large proportion of the overall funding and has to us and have been at the forefront of pioneering innovative expertise in property development and project management. new methods. This has drawn accolades for its groundbreaking Furthermore, because LIFT transfers risk to the private investor, approach, clinching the ‘best UK deal to sign’ for the Tyne the partnership enables public sector professionals to focus on Crossing project at the Public Private Finance Awards 2008.” delivery of a good quality service”. Another initiative is the Newcastle and North Tyneside local In Newcastle, developer Robertson is building all four of improvement finance trust, or LIFT for short, which has also the city’s new customer service centres (CSCs). Kenton and proved a huge success. A form of public-private partnership Gosforth are complete and functioning, while the west end ➺

25 feature funding

Benwell and east end Byker projects are 15 years. Newcastle was among 14 local due to open by the end of 2008. Kenton, authorities selected to participate in the the first of the schemes, opened in 2005 first wave of the government initiative. It and offers a three-doctor GP surgery, is refurbishing and rebuilding 16 schools dentists, and a full range of PCT services as part of a £180 million project signed including midwifery, district nursing and with Aura Learning Communities, a older people’s provision. It was followed consortium of PB, Sir Robert McAlpine by the Gosforth customer service centre and Robertson Capital in July 2007. and library in December 2007. Construction work is already under way CSC staff are trained to help at eight schools across the city, with the It’s about with more than 90 different council first due to be complete in 2009. services, including paying council PFI is also going strong. In March finding the most tax or rent, applying for housing and 2004, Newcastle City Council and North council tax benefit and finding out Tyneside Council signed a £250 million appropriate way about environmental issues and trading PFI deal with energy giant Scottish standards. Northumbria Police hold and Southern Energy. The contract, to of financing a monthly surgery sessions and Your replace and maintain streetlights in both scheme, for its Homes Newcastle also holds a surgery authorities for the next 25 years, was the there each weekday. What’s more, first time two councils had entered a joint size and scale Gosforth CSC has the first fully self- venture of this kind. The massive scheme service public library in the city to issue will see 80% of the lights in Newcastle and return books, CDs and DVDs. replaced by the end of 2009 and, “The aim is that, once the final two according to Newcastle City Council’s CSCs open next year, over 90% of the director of technical services Michael city population will be within 1.5 miles Murphy, the project is ahead of schedule of at least one centre,” says councillor by one year, or 1,000 lamp posts. Anita Lower, executive member for “We’ve had excellent feedback from modernisation, transformation and residents, gaining over 90% in yearly regulation. satisfaction surveys and that’s even when Building Schools for the Future we’ve been digging up the street,” he says, (BSF) is another form of PPP – this time pointing out that the new “white lights designed to improve and/or replace all of solution” is cutting fear of crime and the country’s school estate over the next increasing CCTV visibility. ➺

26

feature funding

The new £40 million Newcastle City Library due to open in March 2009 is Bringing cheaper finance another high profile example of PFI. At 8,000sq m it will be the largest library into the equation can be the between Leeds and Edinburgh. Built difference between a project over six levels in a striking glass building, services will include lending, study areas, happening or not multi-media, internet and PC provision, a 185-seat performance space, and history and children’s zones. It is also funding several high profile beginning? The £400 million deal will see “The previous library was in a poor Newcastle regeneration and transport a new two-lane tunnel and refurbishment structural state and would have cost schemes “using the freedom and of the existing tunnel on the A19. The nearly as much to refurbish to today’s flexibility of prudential borrowing to project will require no taxpayer funding standards as it would to rebuild,” says help achieve cost effective investment”. as all costs are being met by tolls. Woods Tony Durcan, Newcastle City Council’s These include theT yne Tunnel, Eldon estimates this system will save £20 head of libraries, lifelong learning and Square shopping centre extension and million over the life of the project. culture. the purchase of the brewery site for “Prudential borrowing brings The funding options don’t end Science City. In all, prudential borrowing cheaper finance into the equation, with three-letter acronyms. Newcastle has totalled £94 million since 2004, which can be the difference between a City Council has also taken advantage including £35.1 million in 2007/08. project happening or not, and affects of prudential borrowing. The power, At Eldon Square, the council is the timescale in which it can happen,” which came into effect in 2004, allows investing around £50 million in a £170 he says. “It allows the council to local authorities to borrow without the million refreshment and extension of the participate on a stronger basis and can consent of central government, as long as shopping centre. It holds a 40% equity give us a stronger say in regeneration they remain within their own affordable stake in the scheme (Capital Shopping developments”. n borrowing limits, using future revenue Centres has the remaining 60%) and streams as security for loans. while acknowledging that the “risk “People [in local government] are needed to be carefully considered”, the using it responsibly and innovatively,” council is confident the debt would be says Maureen Wellen, assistant director serviced by increased rental income as a for local government finance at CIPFA. result of the makeover. “They have thought about what they And what about that award-winning want to do.” Tyne Crossing we mentioned at the

28 We’re building a brighter, better Metro for the future. Nexus is taking its plans to modernise Metro to On top of that we hope to win funding for a a new level, investing more than £350 million second track to South Shields, more in Tyne and Wear’s rapid transport system. park-and-ride facilities and the rebuilding of major suburban interchanges. Now the Metro: All Change programme, backed by Government over the next 10 years, Work is already well under way to completely will deliver ambitious modernisation of the rebuild Haymarket station, used by more than whole system. six million passengers annually, and will be complete next year. All Change will let us completely overhaul the tracks and technology which drives Metro to More than 40 million passengers use Metro guarantee its future reliability. every year to get to work, to study, to shop and have fun. But it will do more – modernised stations, passenger information, ticket machines and The whole region backed our business plan to new control barriers will give travellers of the modernise Metro – now watch us deliver. future the convenience they demand.

The refurbishment of the distinctive Metrocar fleet and its long-term replacement will empower Metro to carry passengers in a level of comfort to compete with the car. site map

Wellbar Central p36 Eldon Square p33

Brewery site p32

East Pilgrim Street p33

Stephenson Quarter p34

An in-depth look at the Project regeneration projects shaping Newcastle’s renaissance update

30 project update

Haymarket Hub p37

Ouseburn Valley p40

Baltic Business Quarter p38

Gateshead Town Centre p39

31

Brewery masterplan

The eagerly anticipated redevelopment of the Newcastle Brown and flats and houses, including family homes. The unusual mix is brewery site is one step closer, with clearance of the site now complete. needed, according to Ferguson, to prevent it becoming an isolated Following the most recent round of consultation, masterplanner EDAW campus. “It is a mixed-use development and it just so happens that will present a preferred option masterplan by the end of summer 2008. some of the distinct buildings have specialist occupiers. It is a fantastic EDAW director Jaimie Ferguson claims feedback has been very opportunity to bring a whole host of things together. positive, with local people keen to see it go ahead. “A lot of issues came “It should be an extension of the city centre. The brewery site has up,” he says. “But the main concerns were about the location of taller long been cut off from the city centre and we’re trying to open it up, buildings, land use, and traffic and parking, always big concerns with any with the emphasis on knitting the residential areas in the west to development on that scale.” the centre. The masterplan will blur the edges so there is a seamless The 8ha site to the west of the city centre will be the main focus for transition between the residential quarter and the heart of the city.” Newcastle’s Science City. The science-led, mixed-use development will To help the site blend into the context, the commercial side of the incorporate Newcastle College’s 4,600sq m School of Applied Science, development will be on the eastern edge, closer to the city centre, 27,000sq m of laboratory and research space and 9,000sq m of while the residential element will be on the western edge. The area supporting facilities, including exhibition space and a new business school will be much more pedestrian-friendly, with high-quality public realm, for the college, hotel, retail and office space, student accommodation, and walking routes through the site and into the city centre.

32 project update

East Eldon Pilgrim Square Street

The large swathe of land The ongoing redevelopment of Newcastle’s premier along East Pilgrim Street is shopping centre will increase retail space by 28,000sq m, currently a mix of boarded- as well as creating a new state-of-the-art bus station and up shop fronts, small-scale upgrading the square at the centre of the mall. retail outlets and listed Much of the project has now been completed. The bus buildings. It is hoped the station was demolished in 2006, releasing space which has regeneration of the site, been converted for retail use, and St George’s Way opened which links the Quayside in February 2008, providing a link to Eldon Square and the to the city centre, into a new bus station which opened in March 2007. According to retail-led mixed-use quarter Martin Breeden, group manager at Capital Shopping Centres, will extend shopping in the the improvements have been very well received. Perhaps city centre, essential to the most ringing endorsement of the project is that high-end strengthening Newcastle’s supermarket Waitrose will be opening its first store in the city, role as a regional capital. on St George’s Way, this August. The main issues for the The final section of Eldon Square’s overhaul is now under development of the site construction. Eldon Square South will open in spring 2010, will be the topography (it anchored by a four-floor Debenhams store, the first new slopes from north to south) department store in the city for many years. The scheme will and establishing a good also offer the first flagship-sized units to be built in the city in balance between the design the last 20 years. of the new buildings and the They are particularly desirable, according to Breeden. historic and listed buildings “Opportunity for such big units is very rare. It is difficult to on the site. underestimate the importance of these flagship stores.” The first round of This desirability is borne out by the Arcadia Group agreeing public consultation on the to take 3,000sq m for a Topshop/Topman store and a further development was completed 2,900sq m for a Burton/Dorothy Perkins. Other high street towards the end of 2007. names looking to move into the new space are relocating While plans for public space from existing units within Eldon Square, including River Island and public squares received and New Look, which is taking on a 3,300sq m unit that will a lot of support, traffic and become its biggest UK store. transport remained big The development along Blackettbridge, which opened at issues. the end of 2006, has both shops and restaurants, such as A development Wagamama and Strada which open out on to Old Eldon Square framework is being drawn (which has benefited from a £500,000 makeover), creating a up to establish agreed relaxed leisure space for weary shoppers. principles to guide planning. Once finished, Eldon Square will offer the complete A report on the public shopping experience in the heart of the city. As Breeden consultation is awaiting says: “Eldon Square contains most of the prime shopping in approval by committee and Newcastle. Its redevelopment is hugely important for both the preferred option will the jobs and economy of the city centre.” David Armstrong be announced by the end at Newcastle City Council agrees. “Eldon Square is extremely of the summer. Further important in ensuring Newcastle remains competitive in the consultation will be held in North East region,” he says. “The size and configuration of the early autumn. spaces are not available at the moment elsewhere in the city.” ➺

33 Stephenson Quarter

Thirty years ago the Stephenson Phase one will include a 250-bed Quarter was bustling with industry, Crown Plaza four-star hotel, two including the Stephenson works, office blocks, providing 1,800sq m started in the 19th century by of space, and a 344-space multi- Robert, son of George (inventor of storey car park. Later phases will the Rocket), and contemporary of include conversion of five of the Brunel. Now it’s a run-down, shabby listed locomotive works buildings into area of disparate industrial buildings, a 40-to-60-bed boutique hotel and a cut off from the nearby city centre by centre for cultural industries. the railway lines. But plans are afoot Altogether, this 3ha scheme to turn this prime waterfront area, represents the biggest detailed tucked between central station and planning application in the city for 20 Scotswood Expo the Tyne, into a mixed-use quarter, years. Working with Silverlink on the bringing life to this stretch of river. scheme are two firms of architects – Newcastle is set to host the UK’s first ever The conservation area is home Waring and Nets and Malcolm Fraser, neighbourhood expo in 2011, showcasing around to many listed buildings including landscape architect Southern Green, 300 cutting-edge newly built homes and providing an Robert Stephenson’s 1820s urban design consultant Space international stage for discussion on urban living. locomotive works. Part of this, Syntax, and main contractor Carillion. Inspired by European housing expos, the 20 South Street, the grade II* Complications with leaseholds, Scotswood Expo has two aims. “It’s not just a listed drawing office, has already however, mean it won’t be complete housing expo,” explains Tom Hutchinson, senior been converted, thanks to a until about 2016. regeneration officer at Newcastle City Council. “This Heritage Lottery Fund grant, into The problem of access also is also about neighbourhood renewal. Scotswood a museum dedicated to his work, remains. Newcastle’s impressive has suffered population decline, so we’re taking and another section into office Central Station, to the north of on the biggest challenge and hopefully creating space for small companies, such as Stevenson Quarter, is listed, so something transformational. We want to harness the nano-technology companies, and cannot be altered, a tunnel beneath benefits of the housing expo, generating interest in designers. Now, the same developer, it is prohibitively expensive, and a Scotswood’s housing market as well as creating jobs Silverlink, is planning to continue bridge would have to go a rather and stimulating the local economy.” its transformation of the area with indirect route to the city centre. The expo will promote international ideas and a £250 million development of Current solutions to the problem approaches to urban living, focusing on affordability 1,700sq m of offices, two hotels, mainly involve the existing two and sustainability and debate will be encouraged on 150 apartments, 3,600sq m of retail tunnels, improving traffic flow and the best ways to deliver high-quality volume housing space, cafes and public spaces. enhancing the area for pedestrians. for mixed-income communities. The 60ha site has been granted outline planning permission, a masterplan has been created by Urban Initiatives and now Newcastle City Council has whittled down the potential development partners to a shortlist of just three developers: Barratt Developments & Artisan H (including Keepmoat, Haslam Homes and Yuill Homes); Persimmon and Cheviot Housing Association; and Grainger and Places for People. Competitive dialogue will continue throughout 2008, with selected partners announced in December. The new houses in Scotswood featured in the expo are just the start of a major regeneration project for the neighbourhood, which will eventually be home to 1,800 houses, community, retail and commercial facilities and new public spaces. It is hoped the redevelopment of the neighbourhood will encourage families to return to the area, which is just 7km from the city centre and will have a new school and improved public transport facilities.

➺

34 Pilgrim Street: A new vision for the historic heart of Newcastle

| Open spaces | New hotels | New shops | City centre offices | Café culture | Private apartments | Fine dining | Residential accommodation

For more information contact Mark Robinson, Development Director, Brookfield Europe on 0191 231 6010 North Tyneside

North Tyneside Council is joining forces with Newcastle City Council and One NorthEast on an ambitious project to regenerate a 10km stretch of underused land on the north bank of the River Tyne. Much of the huge 600ha site, once globally renowned for its shipbuilding – at its peak, the Tyne shipyards built 25% of the world’s shipping – now lies vacant or underused following the downfall of the industry in the area. Notwithstanding this decline, the area continues as a key employment sector for Tyne and Wear, attracting world class companies operating at the cutting edge of new technology. Interest in the area from marine and other industry sectors is growing steadily and the prospects are excellent for future development. The significant scale of this project, which will have an unprecedented effect on the prosperity of the area, means completion may be some way off, but a considerable amount of consultation has already taken place and feasibility work has also been carried out on-site. The area also includes the Hadrian’s Wall World Heritage site, which will be enhanced as part of the project. A masterplan for the regeneration of the site is being formulated and within 12 months a regeneration strategy will be in place. It is anticipated that the developments on the north bank will be heavily focused Wellbar on training and employment. Central

Testament to the demand for high-quality office space in the city’s Gallowgate area, when Moonglade Holdings’ latest addition to Newcastle’s office sector Time Central (above) opened its doors in April, all seven floors were pre-let. Not surprisingly, Moonglade is already following up on its success by redeveloping neighbouring Wellbar House. Demolition of the landmark 1960s building started at the end of last summer and building work is now well under way. Once completed, in November 2009, the 10-storey office block will offer 10,000sq m of grade A office space as well as retail units on the ground floor and two basement car parks. “We’ve built on what we learned with Time Central,” says Moonglade Holdings’ spokesman Richard Wood. “We’re using the same architects but have increased the specification, this new building will offer the highest spec office space in Newcastle. I think the city is ready for an upgrade. A lot of national companies expect high-quality office space, something that Newcastle is lacking. “Time Central was a groundbreaking project, putting office space of that quality in the Gallowgate area. Its success proves that there is demand and we’re following it up with Wellbar Central, so called as it is in the heart of what we consider to be the central business district of Newcastle. There is definitely scope to expand the office quarter in Gallowgate. With such a lot of regeneration going on in the city, this area will look very different in five years’ time.”

36 project update

Haymarket Hub

Work is well under way on the enabling the station to remain open redevelopment of one of the city’s to passengers. Once complete, the old busiest metro stations. Used by station will be removed. 120,000 passengers each week, The upgrade, which includes the Haymarket’s unassuming single-storey installation of lifts and a third escalator station is in the process of a dramatic as well as new colours and signage, transformation into a four-storey, steel- is part of Nexus’s £600 million and-glass encased hub. reinvigoration programme. The design When complete, in addition to the will freshen up the station and create a Metro station, the Haymarket will offer more open, brighter environment for the retail units on the ground floor (most of six million passengers who pass through which are already let), a restaurant/bar it each year, while making it accessible on the first floor and 6,000sq m of for all. office space on the upper floors. Ken Hunt, director at Closegate Construction started in June 2007, Developers, claims the Haymarket Hub but as the station has had to remain is a 21st century building. “The design open throughout the development, will achieve an iconic building at the logistics have been quite a challenge. northern gateway to the city,” he claims. Piled foundations of between 30 and “The area around Northumberland 50m are now in place, and the exterior Street needs further investment and steel structure framework is being hopefully Haymarket Hub will set new constructed around the existing building, standards for design in the area.” ➺

37 Baltic Business Quarter

Gateshead’s regeneration has seen the creation of a string of striking cultural icons, such as the BALTIC Centre for Contemporary Art and the Sage Gateshead, which have had a revolutionary effect. Now this is spreading to the rest of the town. Away from the river, slightly south of the Gateshead Millennium Bridge, a huge derelict site is gradually being moulded into the region’s premier commerce location. Investment of around £300 million will transform this disused space into a 21ha urban business district, creating an estimated 7,000 new jobs. Baltic Business Quarter will benefit from its desirable location, something David Leeder, head of major initiatives team at Gateshead Council, recognises as one of the development’s strongest selling points. in today’s testing conditions. “It is an easy sell,” he says. While Gateshead’s Tyneside “We see it as being the best developments were all about location for business in the physical regeneration, the focus region. It is within walking at Baltic Quays is very much distance from Gateshead town about job creation and business. centre, and within walking Leeder says: “We have always distance from Newcastle city seen the connection between the centre. It sells itself in some Quays, being very high profile, ways.” and the Baltic Business Quarter. The great location has It is a very large development already tempted two key bodies opportunity and the potential to move into the area: Gateshead to bring good quality jobs College, already in situ, and the into the area is really quite Open University, whose campus unusual for the centre of a large building is under way. These two conurbation.” will create an anchor for the other commercial buildings on site, and ensure its success, even

38 project update

Gateshead town centre

The dramatic regeneration of the River Tyne’s become a central feature of the town centre, south bank has significantly improved Gateshead’s will bring new retail opportunities, as well as a national and international reputation. But only a 120-bed hotel, workspace and leisure options. It brief walk away, the town centre still trails behind will be progressing through planning in summer the standard set by Gateshead Quays. Help is at 2008, and is due for completion in 2011. hand though, as the second wave of the town’s David Leeder, head of major initiatives team regeneration is set to begin. at Gateshead Council, is overseeing the town’s To increase Gateshead’s contribution to the continued renaissance. He sees Trinity Square as wider region and ensure the town centre retains a significant element of the task in hand. “When its identity, Gateshead’s core will become a completed, Trinity Square will be a major step sustainable mixed-use hub, with greatly improved forward in basic retail provision for the local area. quality of design, facilities and services, and the “The main aim of the work is to create a much standards set by the river mirrored in the town better centre for the needs of local residents, centre. as it’s a natural focal point for quite a large Among the many developments, Trinity Square population. It is also part of central Tyneside: we stands out for its scale and the changes it will are increasingly looking, with Newcastle Council, bring. The 3.5ha mixed-use development, to at the urban core of the region as a single entity.” ➺

39 Ouseburn Valley

Newcastle’s alternative cultural conservation category for the way it houses, has gained planning permission. quarter is becoming even more of an linked the historic building, previously Developed by Metnor, and designed ‘urban village’, as its economic base is derelict in places, with contemporary by Faulkner Brown architects, the strengthened, but its quirky, bohemian architectural interventions. scheme’s BREEAM standards mean it will feel maintained. Joining such popular Also in Upper Steenberg’s Yard, be one of the most sustainable office projects as 36 Lime Street, an artists’ Priority Sites has started work on schemes in the region. The first phase studios cooperative housed in an old flax the Media Exchange, a £5.2 million, will include 3,700sq m of office space mill, the hugely popular Seven Stories 2,300sq m office scheme, with nine for small companies, reflecting the national centre of children’s literature, office suites from 130sq m to 320sq m, entrepreneurial feel of the valley. and Ouseburn Farm environmental designed specifically to attract creative The 3ha development will link the centre, on the site of an old leadworks, SMEs. The scheme, which will create northern end of the Ouseburn to the are new schemes winning wider acclaim. or safeguard 83 jobs, is scheduled for city centre fringe, with the masterplan Two projects by Mosedale Gillat completion in December 2008. recreating the urban fabric around Architects won three Lord Mayor’s Next steps for the valley concentrate Portland Road. Consent is being sought Design Awards last year. Collectively, the on encouraging riverside development. for some alterations to the original plan, conversion of the Formes Woods Pottery As the Ouseburn is tidal, its water level so a start date on site is uncertain. into commercial space and a nearby varies throughout the day, from lapping To the east, on the borders with building in Upper Steenberg’s Yard (full high up the river walls, to revealing Byker, another project vital to the area of listed warehouses and factories) unsightly, and smelly, mudflats. To keep is St Lawrence Square, where 97 new into a high-quality printer, Northern the river at the same level all day, a homes will replace three blocks of deck- Print, won a special regeneration award barrage is being built, for completion in access flats, which had become run- for their contribution to the Ouseburn July 2009, a few metres up from where down and semi-derelict. Valley’s character. Individually, the the Ouseburn meets the Tyne. As part of the council’s policy of Northern Print project won the small- Away from the river, at the northern setting a high bar for design quality, this scale development award for its use of gateway to the valley, the first phase on is an exemplar scheme, won at design restricted space in a listed building, and the Portland Green site, a £40 million competition in 2006 by Nottingham- Woods Pottery won in the refurbishment/ redevelopment of offices, shops and based Letts Wheeler Architects. n

40 7229_PSL NE Ad PW 302x230:7229_PSL NE Ad PW 302x230 22/7/08 13:59 Page 1

project update Spanning the country

Priority Sites specialises in the development of new business space in partnership with landowners, regional development agencies, local authorities and businesses. If you know of land with development potential please contact Amanda Oliver on 01977 520 505. Priority Sites is currently active in the following areas of the North East:

Media Exchange, Ouseburn Valley, Newcastle Esther Court, Wansbeck Business Park, Ashington Apollo Court, Monkton South Business Park, South Tyneside

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