renaissance #8

Inside: Marine and offshore, creative and digital, asset management, decision makers and game changers . . .

Newcastle’s regeneration magazine

issue eight: autumn 2013

renaissancenewcastle.com

contact: Miller Construction, Parsons House, 2nd Floor Parsons Road, Washington NE37 1EZ telephone: 0870 336 4980 email: [email protected] visit: www.millerconstruction.co.uk

Providing end-to-end property solutions,

including design and development, project

management, build and life-long asset

management, Miller Construction is working

across the North East region and helping to

bring to life the regeneration vision for

Newcastle and Gateshead.

Major projects include: the transformation

of Newcastle Central Station, the flagship

Stephenson Quarter development at the

heart of the City, the new Queen Elizabeth

Hospital emergency care centre in Gateshead

and the completed North Tyneside Police

Area Command Headquarters.

North Tyneside Police Area Command Headquarters

Queen Elizabeth Hospital emergency care centre, Gateshead

Newcastle Central Station

Stephenson Quarter, Phase 1 Newcastle Central Station

MILLER_ConstructiveInnovation[460x297]advert_artwork_Layout 1 28/06/2013 15:11 Page 1

www.millerconstruction.co.uk

Dedicated to NewcastleNewcastle Racecourse

St James Retail Park

East Pilgrim Street

http://www.newcastle.gov.uk

Newcastle’sregeneration magazine issue eight: autumn 2013Editorial director Siobhán Crozier Head of design Rachael Schofield Design Katrin Smejkal Contributing editor Sarah Herbert Reporter James Wood Divisional director of business development Paul Gussar Business development manager Shelley Cook Production assistant Joe Davies Office manager Sue Mapara Subscriptions manager Simon Maxwell Managing director Toby Fox

Printed by Wyndeham GrangeCover image Millennium Bridge Reflections 1 © iStockphoto/Sirimo Images NewcastleGateshead Initiative, Silverlink Holdings Ltd, Northumberland National Park, Lee Dobson Photography, Steve Brock Photography, Byker Community Trust, Wates Group Ltd, Sarah Blood, OSBIT Power, SMD, Apache North Sea Limited, OGN Group, Kirsten McCluskie, Taylor Wimpey, Persimmon, Steve Clasper Photography

For Newcastle City Council

06 News A round-up of news on business and development.

10 Creative and digital This key sector is growing, with established agencies leading the field in picking up national contracts.

15 Marine offshore Deep knowledge and deep waters draw investment.

20 Project update A summary of regeneration schemes under way. Investment and development:

28 Council’s new CEO Pat Ritchie on change at the council and fresh investment in the city.

31 Inward investment Councillor Ged Bell sets out council priorities on attracting investment.

34 NewcastleGateshead Director Catherine Walker on NGI’s initiatives and success in bringing investors to the area.

37 Asset management The council’s review of assets results in disposal of buildings – and frees up funding for reinvestment.

40 Markets Graphic facts and vital statistics.

43 Housing Great place to live – new developments across all tenures and price ranges.

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New

castle’s regeneration magazine


Inside: Marine and offshore, creative and digital, asset management, decision makers and game changers . . .

Newcastle’s regeneration magazine




Cover imageRiver Tyne – the big picture

© 2013 3Fox International Limited. All material is strictly copyright and all rights are reserved. Reproduction in 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 responsibility for omissions or errors. The views expressed in this magazine are not necessarily those of 3Fox International Limited.

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06

round-up:What’s new, hot and happening in Newcastle upon Tyne

NewcastleAirportwilldoubleitspassenger numbers by 2030, according to a masterplan outlining its expansion. It will also create more than 2,000 jobs over the same period.

The consultation document says that passenger numbers are expected to increase from 4.4 million in 2012 to 8.5 million by 2030, while the number of jobs in the region supported by the airport would rise from 7,800 to 10,000.

The masterplan includes proposals for extensions to the terminal and satellite pier development, as is the construction of a multi-storey car park to the front of the terminal.

Newcastle Airport chief executive David Laws

said that new infrastructure with capacity for larger aircraft, backed up by more staff, would be essential to accommodate this predicted growth in passenger numbers.

“We want to build on our successes and continue to grow the airport sustainably, mindful of our commitment to protecting the environment and the amenity of surrounding communities,” said Laws.

“To mitigate the airport’s growth, we are investing in new technology to build on our existing capabilities, ensuring that we continue to monitor noise effectively, so our operations don’t unduly disturb our neighbours.”

Expansionplanshavetakeoff

CoNsultANCyExpANdstomEEtdEmANdplanninganddesignconsultantBartonWillmore has opened an office on Newcastle’s Quayside to capitalise on the “growing potential” of the north-east, bringing its tally of UK offices to 11.

Barton Willmore said the move was a response to it winning a string of new clients in the region, including Bellway, Taylor Wimpey, Persimmon, Home Housing, Galliford Try and Zara Holdings.

onthejobAtraining,employmentandenterpriseprogramme launched in Newcastle in July aims to help young people secure construction industry apprenticeships.

Those who pass a two-week course at Newcastle College, which offers basic training in bricklaying and joinery, will be offered interviews with potential employers. Six successful apprentices will be placed at the Scotswood redevelopment programme, the biggest regeneration project in the north-east.

Newcastle City Council runs the programme in partnership with Newcastle Futures, the Construction Industry Training Board, Scotswood Area Strategy and Newcastle College.

07

loNdoNtuBE-stylEgAtEsformEtroNewautomaticticketgatescouldtransform how passengers access the Tyne and Wear Metro, with investment in a system similar to that used by London Underground.

Nexus, which owns, manages and is modernising Metro, has begun testing the electronic gating system, which is part of a £385 million modernisation programme – Metro: all change.

Staff training is also under way on the new system. It will enable publicly-owned Nexus to cut down on fare evasion, which costs taxpayers £1 million a year in lost revenue.

The introduction of electronic gates means that for the first time, more Metro stations will be staffed. All gated stations have to be staffed while gates are in operation, to provide passengers with assistance.

Deputy director general of Nexus, Tobyn Hughes, said: “We are moving closer to the big switch on of Metro’s new automatic ticket gates. We will publicise a start date well in advance of the whole system going live later this year.”

Nexus will start switching on the ticket gates for passenger use in the autumn. A phased introduction will enable passengers to get used to the changes, which affect 13 out of the 60 Metro stations.

It’swarmupnorthupto50,000householdsandbusinessesin the north-east are set to benefit from the UK’s largest energy saving scheme.

The £200 million ‘Warm Up North’ scheme, run by British Gas, is due to begin in September 2013 and is aimed at reducing energy bills and tackling fuel poverty.

It is estimated 500 high-quality jobs will be created through the supply chain, apprenticeships and training and skills opportunities.

The Warm Up North partnership includes eight local authorities: Darlington, Durham, Gateshead, Newcastle, Northumberland, Redcar and Cleveland, South Tyneside, and Sunderland and is also supported by the Association of North East Councils (ANEC).

Councillor Ged Bell, cabinet member for investment and development at Newcastle City Council, said: “Warm Up North will make a significant contribution to a number of our priorities in Newcastle – by tackling fuel poverty, it will help to reduce inequalities; by improving energy efficiency, it will help create decent neighbourhoods; and by creating job opportunities, it will help to create a working city.”

£17mfACElIftforEldoNsquArE

theownerofNewcastle’sEldonsquareshopping centre has gained consent for a £17 million programme to redevelop two malls and establish a new dining quarter. The covered dining space would be split over two levels, creating 21 catering units.

Intu said both casual and fine dining operators had expressed “great interest” in the project, predicting the scheme will bring new brands to the city. Asset management director Martin Breeden said Eldon Square has an annual footfall of 36 million. “We look forward to bringing some great new names and concepts to the city,” he said.

Intu estimates that 250 jobs will be created. The project is due to start in early 2014 and to open by Easter 2015.

round-up continued

08

lEpbagsexpertNorthEastlocalEnterprisePartnership has signed up a commercial innovator to help the region become a global centre for business and research.

Professor Roy Sandbach has been a research fellow at Procter & Gamble for 30 years, with particular interest in the creation of new products and brands.

LEP chair Paul Woolston said Sandbach’s addition to the team underscored the breadth of talent in the region.

He said: “Roy’s commitment, energy and expertise will drive our innovation strategy which in turn will provide a route for us to compete on the world stage, create highly skilled jobs and involve local people in the area’s growth and success.”

tIf:BoosttoINvEstorINtErEst

NewcastleCityCouncilhasrecorded a substantial rise in inward investment enquiries, partly thanks to its use of tax increment finance (TIF), according to chief executive Pat Ritchie.

Speaking at the British Property Federation’s annual conference in June, Ritchie said: “There has been quite an increase in enquiries over the past six months, especially from companies responding to the council’s innovative approach to joint investment, in which it uses its land assets and borrowing powers to help bring forward deals.”

She outlined Newcastle’s status as one of the country’s largest Accelerated Development Zones (ADZ), in which TIF can help fund infrastructure improvements.

“Using TIF powers we can retain 100% of any business rate uplift from development, which allows us to take more risk with certainty of income in the future,” Ritchie said.

Of the council’s £400 million capital programme, £96 million is allocated to supporting schemes in the ADZ.

Pat Ritchie discusses the city’s plans for investment and development in an in-depth interview on page 28.

Corestrategypublished

Aprospectusshowinghowlandin Newcastle and Gateshead will be used for housing, employment and business has been published by Newcastle City Council for consultation. Proposals set out in the Core Strategy and Urban Core Plan will deliver 14,000 jobs and 21,000 homes to meet the needs of the city’s growing population.

More than 70% of new homes will be built on urban and brownfield sites, including new land for development, reallocated from employment use to housing, in Newburn and Great Park.

The council’s Future Homes Fund will invest £25 million over the next three years to reinvigorate the housing market and to help accelerate the development of brownfield sites.

Nick Forbes, leader of Newcastle City Council, said: “This is a major step forward for our city. It creates the foundations for Newcastle to grow and to play a part in the global economy of the future. The plan will help create a confident, competitive business sector, thriving communities and new skills, jobs and homes for the next generation.”

late-nightlevyAproposalfortheuK’sfirstlate night levy, to ensure the city remains safe and vibrant, has been agreed by Newcastle City Council’s cabinet.

Newcastle is known for its ample selection of cafes, restaurants and bars – used equally by shoppers and visitors during the day – as well as by people enjoying a night out in the city centre.

The levy, set by the government, depends on the rateable value of the premises and will contribute towards the costs associated with the late-night economy. Funds raised could be spent on taxi marshalling, CCTV improvements, street pastors and street cleaning.

1272 - Renaissance AD.P.ART.indd 1 24/06/2013 11:08

www.homegroup.org.uk

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feature creative and digital

Newcastle’s renaissance is being led by its creative and digital companies, with their ability to create niche products, gift for collaboration and relentless eye on the future. James Wood reports from the Ouseburn Valley, fast emerging as the region’s very own Silicon Glen

Future reflections

Enticing creative talent to Newcastle – famed more for its industrial bedrock and thriving factories – once seemed like quite a challenge.

But the transformation of formerly derelict sites, such as in the remarkable regeneration of the Ouseburn Valley, has attracted flourishing clusters of creative and digital agencies.

One such development is Hoults Yard, the creative quarter on the outskirts of the Ouseburn. Once a pottery called the Malings, the site was acquired by the Hoult family in 1948, and now hosts a versatile range of companies, from fashion designers, advertising and search engine optimisation firms, web designers and software developers to TV, music, art and culture aficionados.

This new vision was set out by Charlie Hoult, who returned to his family’s

site in 2008 to create a vibrant creative community. Now, the former industrial estate is dominated by eye-catching murals by top graphic designers, while a communal cafe acts as a centrepiece and at the north end of the site, a renovated warehouse hosts performances from top bands and DJs.

The idea was to create a collaborative ‘media village’, but with a competitive edge. “The idea is that if you have clusters of creatives working in a stimulating environment instead of companies cannibalising each other,” says Hoult, “it can actually give their business an incredible momentum.”

The companies at Hoults Yard also take pride in their niche products and targeted markets.

Fashion designers Disturbia’s intricately hand drawn t-shirts are

Above left: At Hoults Yard, PDS Multinational designs fashion for the mass market.Top: Tom Chaplin of clinical software specialist, Digital Spark at the Toffee Factory.Above: Soleheaven’s Dale Parr retails his streetwear range online from Hoults Yard.

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creative and digital feature

exported globally and the site has been the perfect base for the company, says managing director Frank Major.

“Orders come in from all sorts of weird and wonderful places,” he says. “Since we’ve been here, we have grown to the point where our output covers just about every country in the world.”

And at the mass production end of the market, Hoults Yard is also the base for PDS Multinational, which designs clothing for supermarket retailers, including Tesco and Sainsbury’s.

Elsewhere in Hoults, Screech is developing a mobile phone app for bars, which transforms a handset into a personal remote control to be used to access the bar’s television.

“The future is definitely interactive,” says managing director Paul Rawlings. “With this software, customers can vote for the man of the match after the football, choose music to cue up on the juke-box, or take part in interactive quizzes. And that’s just the beginning.”

Screech already has its product in hundreds of pubs across the north of England and it is steadily growing.

So what draws such innovative companies to former industrial sites like Hoults Yard?

International digital marketing agency Silverbean has grown so fast that it has

“The idea is that if you have clusters of creatives working in a stimulating environment ... it can actually give their business an incredible momentum”

Top and above: Buildings at Hoults Yard, where graphic artists have been commissioned to produce murals.Right: Charlie Hoult set out to establish a creative community at his family’s premises.

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feature creative and digital

had to move offices three times in as many years – but being at Hoults Yard has ensured the company never needed to relocate. Managing director Neil Robbins says: “The yard caters for companies of various sizes, and there’s always that option to move into more suitable space.

“The atmosphere and facilities make for a unique work environment and that really helps with the retention of staff,” Robbins adds.

This opinion is shared throughout the site. Dale Parr, managing director at e-commerce sneaker and streetwear retailer Soleheaven, says: “The yard has become a real cultural hub.

“Independent music events and graphic art build the environment, which all ties in neatly with the street culture and fashion companies that work here.

“It makes for a really real, strong community because businesses work for each other and people want to be here, even outside working hours.”

Charlie Hoult reflects on this story of success: “When I came back to the north-east, I went looking for a particular sort of tenant and it wasn’t hard to find

people who were on the same mission.“Newcastle is a perfect size. There are a

million people [in the region] and north-east universities are top class, working hard to pinpoint areas to build success both nationally and internationally.

“With Ouseburn, you could say that the Silicon Roundabout thing is right here in the north-east,” he adds.

Another technology company in the yard is Opencast, of which Hoult has

become chairman. The enterprise – with offices in London and New York, as well as Newcastle – provides software models to global health, insurance and financial services clients, as well as fixing, developing and testing software.

Pioneering technology is also being developed at another valley hotspot – the Toffee Factory. Winner of three RIBA awards in 2012, this refurbished factory is at the heart of the regeneration of Ouseburn and acts as another hub for creative and digital agencies.

One such company is Digital Spark, founded by Michael J Bell and Gavin Kipling, developing potentially lifesaving healthcare software, which came about after the creators saw “a monumental gap in the market”, with clinicians still using a pen and paper to record critical information after patient heart surgery.

Social and digital marketing manager, Tom Chaplin, explains: “Our big product is called ‘capture stroke’, an extremely

“With Ouseburn, you could say that the Silicon Roundabout thing is right here in the north-east”

Below: The Toffee Factory at Ouseburn has emerged as a creative and digital hub.

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Awards and works with worldwide brands such as Samsung, BT, Lovefilm, Mercedes, Danone and the BBC.

MD James Allen says: “It’s actually been really useful. When you’ve got big networking events in the city like Thinking Digital, where companies come together to share new insights and discuss ideas, you get inspired by the amount of talent in the city.”

One of Newcastle’s entrepreneurs best placed to pinpoint the benefits brought by the city’s creative and digital renaissance is Phil Coverdale.

He is managing director at Cravens, the city’s oldest marketing agency, which was established in 1948.

While Coverdale has overseen a leading campaign for Nikon, a rebranding of the sport of rowing in time for the London Olympics and the building of a Dubai base, he believes: “It’s the power of small that allows you to become more collaborative. And that’s how Newcastle can overcome the challenge of retention.”

It is the digital sector that is the future for the creatives and that which will allow Newcastle’s agencies to become global. “Digital is like oxygen – it’s everything,” Coverdale affirms. n

regeneration. “Just look,” he says, gesturing to the former factory’s stylish offices, with its river views. “When I left university there was no reason at all to come to this part of the city.

“There’s an amazing array of talent here in Newcastle and with sites like this, city entrepreneurs feel like they want to give something back.”

And on the other side of the city, what do longer-established creative marketing firms, such as Guerilla and Cravens, think of these young upstarts? Far from any bitterness at the rise of the city’s younger businesses, they actively encourage their progression. Guerilla recently won the Global Brand Strategy of the year at the Drum Marketing

accurate data collection software service for stroke wards and clinicians.

“The first 24 hours after cardiovascular emergencies are crucial to make sure the patient gets the right treatment, and this software is tailored for that,” says Chaplin. “We have a lot of support from the city council. We work with healthcare trusts in Gateshead and Tyneside, which has all enabled us to create a really strong base here.”

So what does the Toffee Factory offer? According to Chaplin: “The collaborative culture of the city in general is one of the massive plus point of being here and I think the Ouseburn Valley is at the hub of that.”

Among the other companies moving into the Toffee Factory in late 2011 was Keltie Cochrane, a creative communications agency which has worked with big-name clients in the US and UK on a plethora of campaigns.

Managing director Jason Cochrane says competiveness and collaboration help Toffee Factory companies to grow: “There are a lot of agencies in the city, so you have to be ahead of the game,” he says. “We’ve got great respect for those around us and hopefully, the feeling is mutual. There is a healthy competitiveness here.”

As the sun beats down on the river and shimmers in his sights, Cochrane reflects on the Ouseburn Valley’s

creative and digital feature

“Just look – when I left university, there was no reason at all to come to this part of the city”

Top: High quality welcome – reception space at the Toffee Factory.Above: Industrial architecture transformed.

Nexus: we deliver6km of Metro track and drainage replacement was completed in Jesmond and Gosforth this summer.

The latest successful project in our £385m Metro: all change modernisation programme.

Find out more at nexus.org.uk.

www.nexus.org.uk

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marine offshore feature

An armada of Tyneside companies and an army of highly skilled Newcastle professionals support the marine and offshore energy industry, one of the world’s fastest-growing industries and one of the region’s three major core growth sectors. Paul Coleman reports

Field of vision

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feature marine offshore

Offshore Group Newcastle’s (OGN) massive platform rig covers an area twice the size of the Newcastle United football pitch and represents a British manufacturing milestone – it was the first central North Sea platform built by one UK construction yard for 25 years. Towed down the Tyne and positioned 110 miles off Aberdeen, Forties Alpha Satellite Platform (FASP) adds 25,000 barrels of oil per day (bpd) to the current capacity of 57,000 bpd.

The FASP is part of a £400 million construction project for American oil and gas producer, the Apache Corporation. The design and build contract was awarded to OGN in 2010, and from concept to completion needed over three million hours of work by 2,000 employees at OGN’s Hadrian Yard at Wallsend. Another 5,000 workers benefited across the UK supply chain.

“This is a great testimony to the manufacturing capabilities and skills of the oil and gas supply chain in the north-east,” says OGN Group chairman Dennis Clark. “It also shows that the north-east region’s track record of engineering and fabrication could have a bright future at the heart of a thriving offshore energy sector.”

OGN was established only four years ago when it acquired Hadrian Yard, investing £25 million, and capitalising on strong global energy markets, especially the sustained renaissance in North Sea oil and gas.

Newcastle is ideally placed for the companies engaged in specialist offshore and marine fabrication as well as logistics and delivery, R&D, operations and maintenance. Its proximity to the North Sea’s 600 offshore oil and gas installations, 10,000 kilometres of pipelines and 5,000 wells makes it an obvious choice for firms in this line of business. Newcastle is also the closest port to the world’s largest proposed offshore wind farm at Dogger Bank.

In fact, 66,000 of the UK’s estimated 440,000 jobs in offshore energy, and an astonishing 1,500 supply chain companies, are in the north-east, according to research by NOF Energy, the Durham City-based business development organisation. NOF’s 200 north-east members enjoy a combined turnover of more than £2.5 billion.

Pat Ritchie, chief executive of Newcastle City Council, says: “The development of the offshore marine sector in the north-east has been dramatic, and a welcome boost to our local economy. There has already been more than £100 million worth of investment by existing companies on the North Bank including GE Oil and Gas, Bridon International, Duco/Technip and Shepherd Offshore Services.

“This investment, alongside complementary public sector investment in infrastructure and research, development, testing and training facilities, is helping to bring skilled jobs and high technology engineering back to the banks of the Tyne, and building a world-class network of suppliers and business services, the sector is bringing new confidence in the economic future of our region.”

Such companies see Newcastle as ‘Offshore-

on-Tyne’, an exciting investment location, thanks to its location, infrastructure, and the Tyne itself. Vessels use the deep waters of the Tyne to move large installations, umbilicals, high-pressure valves, wind turbines and power cables. The river banks host some of the most advanced offshore and marine facilities, while its deepwater berths are matched with heavy loading facilities.

The river’s overhead crane capacity sensitively mobilises large – and even abnormal – oil, gas and subsea loads. For example, the 200-feet high hammerhead crane at Walker Quay – the heaviest lift capacity of its type in the North Sea basin – can now carry loads of up to 325 tonnes, following a £4 million refurbishment on behalf of quay owner Newcastle City Council, by Konecranes, who were assisted by the council’s agents and quay operators Shepherd Offshore.

“This allows us to carry bigger reels of pipes for our clients,” says Shepherd Offshore director Charles Shepherd. “It will also reduce the cost for clients.”

And now the north bank of the Tyne has been designated as a Centre for Offshore Renewable Engineering. Neptune Energy Park provides dry dock testing and boasts a 700-tonne load-out pad, while the National Renewable Energy Centre at nearby Blyth leads the way in UK development and testing of new renewable and turbine energy technologies.

But it’s not just the infrastructure that gives Newcastle the edge. The region’s commercial cluster and workforce – traditionally steeped in engineering excellence – are pioneering technological developments in oil, gas, marine, subsea, offshore wind, tidal and wave energy. Newcastle and the north-east are also home to growing plethora of professionals providing energy companies with support, including accountancy, insurance, legal services, recruitment, and communications.

One company taking advantage of what the city has to offer is OSBIT Power, established in 2010, which creates secure MaXccess platforms for technicians to safely access wind turbines in harsh

Top: World-leading Soil Machine Dynamics’ cable burial tractor. Above: A British manufacturing milestone – Offshore Group Newcastle’s platform rig.

“Building a world-class network of suppliers and business services, the sector is bringing new confidence in the economic future of our region”

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marine offshore feature

and higher wave conditions. “Building a new team to develop a solution to the offshore access problem has been challenging and hugely rewarding,” says chief executive Tony Trapp. “Creating new technology is something that we have been doing in the north-east for over 35 years.”

Last November, the largest rope-closing machine in the world was switched on at Bridon Neptune Quay, part of Bridon International’s state-of-the-art factory. Reels are lifted directly from the dock to vessels and Newcastle was chosen as a location because of the city council’s investment in its crane.

Orders are already flowing from major multinational operators. Bridon chief executive Jon Templeman says: “We have worked closely with customers to understand the challenges they face in reaching greater depths in some of the toughest conditions on earth. Thanks to this collaborative approach, ropes constructed at Bridon Neptune Quay will be uniquely tailored to tackle 21st century offshore challenges.”

Funding has been secured to build and equip the Neptune National Centre for Subsea and Offshore

Deepwater learning

Institutions in the north-east, including colleges, universities and training academies, produce highly skilled graduates and trainees for the marine and offshore sector.

Bel Valves – an industry leader in the design and manufacture of critical valves for application in the world’s oil and gas fields – offers learning and training opportunities for apprentices, students and employees. The company has helped to shape both the subsea foundation degree offered by Newcastle College and the subsea engineering and management masters degree available at Newcastle University.

Meanwhile, Siemens trains apprentices and service technicians at a dedicated wind power training school that features a fully loaded 2.3-megawatt nacelle – the cover that houses the generating components in a wind turbine – training towers and workstations, while Subsea North East has established an MSc in subsea engineering and management with Newcastle University.

The university’s school of marine science and technology also collaborates on research with other pan-European industry partners, while Northumbria University and Penspen jointly provide a postgraduate certificate in pipeline integrity management and Durham University’s centre for research into earth energy systems conducts vital research in digital mapping, well site geology and drilling technology.

Engineering on the north bank of the Tyne, the first of its kind in the UK. Led by Newcastle University, it will bring together industry and academia to create a world-class engineering research facility. The package of funding includes £3 million from the Higher Education Funding Council for England (HEFCE) Catalyst Fund, matched by Newcastle University and the private sector to finance the projected £7 million capital cost of the centre. It is also supported by the council and is located in the enterprise zone.

The centre includes plans for a unique hyperbaric chamber and environmental test facilities – capable of testing technologies and materials at temperatures and pressures equivalent to those found at the very deepest ocean depths.

Based in Walker’s Offshore Technology Park, Duco (the technology and support centre for the global Technip group) provides bespoke deepwater connections between oil platforms and subsea infrastructure. Duco’s umbilicals – steel tubes or thermoplastic hoses – allow technicians on surface platforms or vessels to control deepwater equipment

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feature marine offshore

renewables supply chain means healthy investment opportunities, and inward investment agency NewcastleGateshead Initiative (NGI) helps companies realise their potential.

Senior investment manager at NGI, Julie Dodds, says: “The energy sector is really important to north-east England. Our team helps companies inside and outside the region to realise their potential to grow. We work with UKTI to help those companies gain access to international markets and see what work they can do with our local supply chain here in Newcastle and Gateshead.”

The final word goes to NOF Energy chief executive George Rafferty, who believes offshore oil, gas and renewables will grow steadily but at different rates over the next five years. “The view is that the real benefits from the offshore renewables sector will not start to accrue until 2015 at the earliest,” he says. “We have plenty of opportunities in the UK but also worldwide. There needs to be £300 billion invested in the UK’s energy infrastructure to ensure we actually keep the lights on and continue to be a leading economy. Newcastle will be at the heart of these opportunities.” n

through electrical or fibre optic cables. Orders for umbilicals continued to arrive in 2013, including from oil companies operating in the North Sea and off the central African coast.

Meanwhile, Wallsend-based Soil Machine Dynamics (SMD) has become firmly established as one of the world’s leading manufacturers of remote intervention equipment that can operate with different soil types and in the most hazardous environments. The local firm won its third prestigious Queen’s Award for Enterprise in 2013 in recognition of its development of three subsea trenching and ploughing products that now help offshore wind and power companies install cables in trenches at depths up to 2,000 metres.

“Securing a hat-trick of Queen’s Awards is testament to the innovative engineering talent we have at SMD,” says chief executive Andrew Hodgson. “The increasing activity in the global energy sector, particularly the offshore renewables market, is creating new opportunities for technology-led supply chain companies that can deliver innovative solutions.”

The north-east’s formidable oil, gas and

Top: Osbit Power’s MaXccess T-18 provides safe high-sea access to wind turbines. Above: The MaXccess system in use.

At Newcastle University we are leading the way in making our research translate into real-life solutions. Strong research links with industrial partners are bringing new technologies and developments directly to the market place with businesses across the globe benefitting from the University’s world-leading expertise and facilities.

Real-life

ResearchSolutions

from

Excellencewith a

Purposewww.ncl.ac.uk/business

CollaborationOne firm to benefit from joining forces with Newcastle University is Red Hat, Inc – the world’s leading provider of open source solutions. The firm has established a new research centre at the University to develop emerging technologies such as grid and cloud computing, virtualisation and middleware technology.

Dr Mark Little, Chief Technologist, Middleware, at Red Hat explains:

CommercialisationNew inventions and technologies are being created all the time at Newcastle University. Intellectual Property arises as a result of this activity across a wide range of scientific, literary and artistic fields.

There are many opportunities for industry and businesses to work in partnership with the University, to further develop this IP for commercial success.

Because the University is a constant source of innovation, our Business and Technology Managers work with researchers and commercial partners to turn ideas and inventions into viable products and services.

Contact usFind out how we can assist you:

Licensing opportunities

Spin-out companies

Research – be at the very forefront of innovation by working with us on research

Consultancy – with nearly 2,000 academic staff, we have some of the best people in their fields for advice and expertise

Knowledge exchange – government schemes designed to help you access Higher Education know how

Financial support – find out about funding streams available to help you work with us

Red Hat sees collaboration with academic institutions as a great way to nurture community relations and long-term research into future technologies.

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For more information on opportunities to work with Newcastle University in the following fields please contact:

Ageing (solutions for an ageing society)Mike MorganBusiness Development ManagerChanging Age for BusinessTel 0191 248 1308E-mail [email protected]

Medical and HealthcareMartin CoxHead of EnterpriseFaculty of Medical SciencesTel 0191 222 7309E-mail [email protected]

SustainabilityDr Sam NeillHead of EnterpriseFaculty of Science, Agriculture and EngineeringTel 0191 222 5860E-mail [email protected]

www.ncl.ac.uk/business

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Projectupdate

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3. Science Central2. Scotswood1. Stephenson Quarter 4. Walker Riverside

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site map

Regeneration is in evidence all around Newcastle – and innovative developments continue to gather pace. We summarise some of the major schemes under way, projects which are providing more affordable housing, stimulating the local economy and aiding the creation of hundreds of jobs

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6. Cowgate5. Byker

project update

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1. Stephenson Quarter

The Stephenson Quarter, next to Newcastle’s Central Station, will result in transforming four hectares of the city with residential, commercial and retail facilities. When redeveloped, the historically significant site immediately to the south of Central Station will provide 2,200 jobs, including 350 during construction.

Finance has been secured for the first phase of the £200 million development, thanks to a deal with Aviva and the Royal Bank of Scotland, after more than £1.7 million was awarded by the North East Investment Fund for the infrastructure that will underpin the scheme.

Miller Construction has started work on the flagship city centre development in the city’s conservation district – the company is also the main contractor to deliver the £8.6 million transformation of the station. The first phase of Stephenson Quarter will include a landmark 251-bed four-star hotel, to be operated by Crowne Plaza, and The Rocket – a multi-use building providing 3250sq ft of Grade A offices and a 357-space multi-storey car park.

The transformation of the area will connect the cultural quayside to the city centre and forms part of a wider regeneration programme. The creation of the vibrant residential, commercial and cultural areas aims to stimulate the regional economy.

The first phase of the Stephenson Quarter project is expected to complete in May 2015.

Newcastle City Council leader Nick Forbes said: “We have acted decisively, in the face of the economic downturn, to unlock development and help create much needed jobs and growth. In doing so we are giving a boost to our economy and sending a message of confidence that Newcastle is a great place to invest in the future.”

More news for the region was the announcement of the £92 million Newcastle City Deal allowing Newcastle and neighbouring Gateshead councils to secure funding from the growth in business rates achieved by the development of three key sites in the city, namely the Stephenson Quarter, Science Central and East Pilgrim Street, and a fourth across the Tyne at Gateshead Quays.

project update

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2. Scotswood

Planning permission has been granted for the north-east’s biggest housing-led redevelopment on the banks of the Tyne.

The New Tyne West Development Company (NTWDC) – a public-private partnership between the city council and builders Barratt and Keepmoat – plans to build 1,800 homes over the next 15 years in the Scotswood area in the West End of Newcastle city centre.

The £265 million investment, which will include a neighbourhood centre, open space and commercial facilities on 60 ha of land, will bring jobs and apprenticeships to the area.

With backing from the Homes and Communities Agency (HCA), the plan is to provide mainly family homes – over

60% will be three and four-bedroom houses, including affordable, owned and managed by the Fabrick Group.

Work on the first 278 homes is now under way, and all will be built to Level 4 of the Code for Sustainable Homes.

Funding from FirstBuy, the HCA’s scheme, will assist first-time buyers on to the housing ladder and money invested in local schools will entice families to relocate to the area.

Power giant E.ON has also signed a deal to construct a district heating system for Newcastle’s Scotswood area.

Under its partnership with NTWDC, E.ON will provide heat and hot water to the area’s 1,800 new-build homes, as well as electricity, using combined heat and power technology from a new energy centre built on the site of a former abattoir in Whitehouse Road.

project update

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3. Science Central

The first building at Science Central has now started on-site, planned to open in Autumn 2014.

The seven-storey building has 3,530sq m of office space for new and growing science companies, and marks the start of development on the site.

Other progress includes enabling works due for completion in August, a masterplan and outline planning consent now in place, and a funding package in excess of £30 million secured to develop the initial phases of the site, which include plans to open up new routes across and through the site, as well as offering up land for public use such as community gardens.

The 9.7-ha site forms part of an initiative to promote the city as a centre for scientific excellence, drawing inward investment. It will build on knowledge and scientific expertise in stem cell and regenerative medicine at the Centre for Life, and Newcastle University’s award-winning Campus for Ageing and Vitality, on the site of the former General Hospital.

As one of the biggest urban regeneration projects in the UK, the

site will also become a focus for the city’s expertise in sustainability and digital technologies. To support this, Newcastle University plans to locate some of its sustainability research on the site, through the expansion of its Institute for Research on Sustainability (NIReS).

Based in the city centre, on the former Scottish and Newcastle Breweries site, Science Central aims to attract hi-tech firms, and with the planned creation of up to 1,900 jobs over the next 15 to 20 years, it will support economic growth.

The scheme will provide a specialist business support hub and state-of-the-art facilities for small start-up science and technology companies as well as inward investors, along with complementary leisure and retail facilities, including a ‘live zone’ accommodating up to 350 new homes, built to the highest environmental standards.

Science Central is funded by the Regional Growth Fund, European Regional Development Fund, and new funding negotiated under the Newcastle City Deal. The project aims to be an exemplar in sustainability.

project update

25

4. Walker Riverside

Walker Riverside, including the Offshore Technology Park, Neptune Park and land between, has been a hub for inward investment and job creation in Newcastle over the past five years.

More than £100 million of investment is going into projects won in competition with sites in Brazil, Malaysia and Germany. This is delivering 500 jobs, with potential for more on-site and in the supply chain, adding to the existing 2,200 jobs in the Walker Riverside area of the North Bank of the Tyne. Companies including DUCO, Wellstream, Shepherd Offshore and Bridon International are also choosing to reinvest.

Walker Riverside runs from the southern end of the former Walker Naval Yard to Newcastle’s boundary with North Tyneside. It has Enterprise Zone status offering Enhanced Capital Allowances. Both former shipyards have benefited from significant land remediation, quay wall strengthening and infrastructure investment by Newcastle City Council.

The residential part of Walker experienced significant economic and social downturn with the decline of the shipbuilding industry and is now undergoing regeneration. The Walker Riverside project is a partnership between Newcastle City Council, Places for People (PfP), Bellway, English Partnerships (now the Homes and Communities Agency) and the community, and originally included the pathfinder project, Bridging Newcastle Gateshead, which closed in 2011.

The scheme includes transport, education and leisure facilities, and different housing tenure types to establish a mixed community of a range of incomes. Over the next 10 to 15 years, Walker Riverside will see 1,780 new homes replacing up to 700 properties. PfP has appointed Lovell to build a 39-home development of energy efficient new homes. This second phase of the Rivers Gate project will be a mix of two, three, and four-bedroomed homes for rent, designed by Bowker Sadler Architecture, due for completion in January 2014.

Hibernia Village, by Bellway Homes, is almost complete, with 97 homes built and negotiations for the final, third phase of 46 homes under way to start onsite in spring 2014.

project update

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6. Cowgate

A regeneration scheme focused on community engagement has reaped successful results at Cowgate, the 1920s estate just north of Newcastle city centre, which had experienced the challenges associated with empty properties, crime and antisocial behaviour.

More than 140 previously empty homes, about 10% of the estate, have been brought back into use as both privately rented and affordable housing, including one block by Places for People. Confidence in the area is growing, with Highmoor Court, run by Anchor Homes, over-subscribed with people wishing to move in.

Allotments developed on former waste ground, as part of the drive to improve the environment, are run by local group Greenhill Allotments.

The Cowgate Illuminations were switched on in December – the result of a project led by artist Sarah Blood, working with younger residents.

The regeneration programme has delivered a 64% reduction in crime.

5. Byker

In 2012 Newcastle City Council transferred ownership of the land and other buildings on the Ralph Erskine-designed Byker estate to the Byker Community Trust (BCT). Properties within the scheme are Grade II-listed.

Since Bolam Coyle was completed last year, the next project is the refurbishment of the Grade II*-listed Byker Wall. BCT selected Keepmoat for the £7 million contract and work was due to start in summer 2013, including a full window replacement, new roof, concrete and brickwork repairs, entrance improvements and repainting.

The main work to upgrading the district heating system has been completed, with a new power plant installed on Walker Road by Npower. A tender process will soon commence to select contractors for the next phase.

Work is also about to start on the empty Grade II-listed Avondale House into a transition housing facility for Armed Forces veterans, with 35 units and a range of facilities including office space, a lounge, kitchen, large enclosed communal garden and a laundry.

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feature investment and development

To say that a new broom has swept through Newcastle City Council in the past year or so fails to capture the extent of change, which – while it continues at whirlwind pace and energy – is being implemented with scientific precision.

With renewed political direction under council leader Nick Forbes, and the combined challenges of significant budgetary pressures with the need for jobs and housing – in a city where physical regeneration is in evidence all around – the focus of the council’s strategy is sharply on fostering economic growth and the development of several large regeneration sites.

The search for a new chief executive elicited fierce competition and produced a strong field. Pat Ritchie, the then chief executive of the Homes and Communities Agency (HCA) in London, with a national profile derived from a record of success in regeneration – partly gained in the north-east – was appointed in the role.

No stranger to leading organisational change, when Renaissance met Ritchie, she was in the process of reconfiguring the city council’s headquarters, in which directors are moving from individual offices into contemporary, open workspaces, reflecting the transparent, collaborative and unified style of management, which will implement the council’s political strategies.

Ritchie’s focus is external, with the local economy poised to take full advantage of the opportunities

Newcastle exemplifies regeneration. With its neighbour, Gateshead, this cinematic conurbation straddling the Tyne shows British cities what can be achieved. With fresh deals being announced on huge development sites, job creation is the council’s major focus. Chief executive Pat Ritchie tells Renaissance editor Siobhán Crozier how it will be delivered

Game changer

presented by the government’s City Deal for Newcastle and neighbouring Gateshead, which will unlock £1 billion of new investment – resulting in jobs, skills, housing and improved transport. The recurring theme is employment, with Forbes’ Working City blueprint guiding the strategy.

One of Ritchie’s early announcements really is a big deal: “The Stephenson Quarter is one of the first projects delivered through the City Deal, with investment from Aviva and RBS to support development of the first phase – a mixed-use scheme with major investment in a four-star hotel, as well as significant office space.”

Momentum is key to the City Deal, Ritchie says: “Stephenson is moving ahead, which is great, but we also need to focus on getting the first gateway building in Science Central. We can capitalise on the fact that we’ve got significant infrastructure, it’s really ready for investors in terms of the ability to use the investment that has gone into that site.”

Early investment in Science Central includes student accommodation and a business centre and Ritchie expects a further deal to be sealed.

“We’re ready to go fairly soon on the gateway building, which will be small office space along the lines of the Toffee Factory, where you’ll be able to come in, run a small business in quite an interesting environment, which will help to kick-start the investment in Science Central,” she says.

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investment and development feature

At the Stephenson Quarter the deal is in place but Ritchie thinks momentum is vital and relationships are essential to successful delivery. “We’ll be focused on working with the developer, Silverlink, the Royal Bank of Scotland and Aviva, who are investing in this project, in order to ensure that the development hits the timeline and is able to capitalise on the investment.”

Ritchie is confident that other agreements will ensue from the City Deal. “We’ll have a number of likely announcements around some of the housing developments, with Scotswood in the pipeline for this year. There is investment in public realm around the development of Northumberland Street. I’m very positive about the investment that the city has secured for Central Station. The multimillion pound project will significantly improve the inside of the station and create a magnificent, sweeping gateway into Newcastle.”

Ritchie is confident that the investment – by Network Rail and the Regional Growth Fund – will transform the station and create a better first impression for visitors to the city.

Former secretary of state for transport, Baron Adonis, has produced The Adonis Review, recommending that seven of the north-east’s local

“We’re prepared to take risks, putting investment and borrowing into projects, as we’ve done in Stephenson Quarter”

Remediation work has been completed at the site and investment is in place for further infrastructure to ensure good access, Ritchie adds. “But were an investor to come and say to us that they wanted to bring a new company there, we can be flexible and really focus on their needs.”

Looking at development sites around the city, there is a mix of economically-led development, like Science Central, through to housing-led schemes like the Carillion-Igloo investment in Ouseburn.

“The city has a mix of propositions for developers and investors and we’re keen to create the right type of environment to do business and to invest in this city,” says Ritchie. “We’re prepared to take risks, putting investment and borrowing into projects, as we’ve done in Stephenson Quarter. We’re also geared to put in place skills and a package to support anybody who’s looking at more inward investment.”

A major focus is also on the city’s strengths and key sectors: “Where there’s already excellence in the university or there are companies that work within specific areas,” explains Ritchie. “I think we’ve got a really strong sectoral-based offer, where we’re prepared to invest and we’ll put together bespoke packages that work with the interest of the private sector.”

Opposite: Investment in Stephenson Quarter will transform the city centre near the station. Below: Modelling the city – Pat Ritchie.

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despite its share of cuts – Newcastle is seeing greater freedoms and flexibility.

In every investment scheme, Ritchie views opportunities for residents as a vital component: “Building employment and training, setting up apprenticeship links to ensure that people in the city – particularly young people who are unemployed – get the benefit of that growth,” she says.

“We need to make sure that the investment going into places like Science Central, the Stephenson Quarter and potentially, the retail developments, has strong links to training and apprenticeship programmes, so that it is to the economic benefit of communities across the city.”

So why would investors choose Newcastle over another city? Ritchie doesn’t have to think twice: “Newcastle has a significant proportion of development land within the city centre.

“It has that flexible investment approach and it’s prepared to work jointly with the private sector to deal with risk. I think Newcastle has significant strength as a core city – it’s well connected. It’s got two strong universities, with strong colleges and a flexible workforce.

“But it’s also a beautiful city. It’s a good place to live and work, anybody who moves here likes it – and they stay – it’s a good people place.” n

authorities operate as a combined authority on various priorities. Ritchie says: “It identified a number of significant strengths for the region, but also some areas where if we came together as a combined authority, we could have greater influence on government resources and be able to tackle some of the weaknesses in the region.

“One of the responses is around the development of a combined authority to deal with economic investment, transport and skills. The travel-to-work and economic geography of the region means we should plan transport together, because there are major employment hubs in different parts of the region, so we need to plan across those boundaries.”

The seven working together as a combined authority, Ritchie agrees, will help to attract inward investment. “Looking at the city’s commercial strengths, its office space and retail offer, that complements some of the investment in new renewables that might happen on either side of the Tyne and further up the east coast,” she says. “Being able to articulate that in a joined-up way across the seven seems a real opportunity for the region.”

Through the City Deal, the council can retain business rates, allowing it to invest in community facilities and services. At a time when councils across the country have serious budgetary issues – and

Above: Stephenson Quarter is named after the inventor of the Rocket, the most advanced locomotive of the day, built in 1829 in Robert Stephenson’s Forth Street Works. Right: A Silent Tyne, Steve Clasper’s image of the Tyne at dawn.

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Bring it onTo complement its rapidly completing regeneration projects, Newcastle City Council is now sharpening its focus on inward investment. We ask Councillor Ged Bell, cabinet member for investment and development, about his strategy for attracting the type of investor the authority wants, who can help deliver on the priorities of creating jobs and building homes. Sarah Herbert reports

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institutions. We have a vibrant city centre, a strong cultural, retail and tourism business and high-growth digital ICT, science and health sectors all strong for investment.

“And our universities and colleges excel at advanced research. We have an established supply chain, new business markets, and access to skilled labour and fresh talent. It is cost-competitive, offering much lower operating costs than many other UK cities.”

And if this is not enough to persuade a wavering investor, Bell adds: “The city is also well-connected, not just with transport but through our people. This element can make a real difference: companies can locate here and easily access networks to new business, professional services and strategic

Growth in jobs in Newcastle’s private sector was stronger than in any major English city outside London until the recession – and the council is determined it will be that way again. “Within the city we need to be poised for investment,” says Councillor Ged Bell. And the opportunity is there, with the City Deal and funding in place for the Accelerated Development Zone (ADZ) sites – of which three are in Newcastle and one in Gateshead.

With government backing for this investment the city council has greater freedom and is now working to capture that capital, in the developments that will deliver homes and create employment.

“We want more significant investments that will bring a balance of high-value, knowledge-led jobs, and lower-value jobs that all our residents can access,” says Bell.

“We need to encourage employer investment in skills and prepare people for jobs in the future through education, training and apprenticeships. To achieve this, the most crucial short-term and medium-term element is ensuring that we have the absolute best infrastructure.”

By infrastructure Bell means more than just good trunk roads or school facilities: it is ensuring the city has the space investors need, including land with the relevant permissions to build the industrial and grade A office space that is in demand and short supply, or to create a ‘stand out’ offer, such as the Neptune National Centre for Subsea and Offshore Engineering at Neptune Energy Park.

Newcastle City Council has an important role to play in the development of the Tyne – creating the conditions for growth – by intervening where necessary to break down barriers and unlock the full potential for local people, firms and communities.

To accelerate economic recovery, the council has four strategic priorities: making Newcastle a working city, growing its existing business space, reducing unemployment, and creating conditions for growth.

As Bell says: “We know that our economy and spatial development plans will only succeed through integrated longer-term planning. Our goal will be to promote economic development, employment and provide certainty for investment decisions.

“We’ll use the opportunities within our city, as well as our partnerships across the region, to improve the business environment and deepen our relationships with communities and businesses in the city and the region. We’ll use our status as Science City to encourage investment in the knowledge economy. Above all, we’ll liaise with business, whether through the chamber of commerce, or through our day-to-day dealings in planning and economic development.”

Away from plans and strategies, what is it that makes Newcastle unique – what makes it a good bet for investment? Says Bell: “We have numerous strengths and successes in our marine and offshore sectors, in professional services, engineering industries and in our science and education

Below: A city poised for investment – Ged Bell, Newcastle City Council’s cabinet member for investment and development. Opposite: Central Station will be redeveloped – an impressive new gateway for the city.

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influencers, allowing them to become quickly established, acquire the skills or advice they need and start generating new business. Businesses in emerging sectors, such as renewable energy, pharmaceuticals and processing industries, collaborate and benefit from our innovations while minimising the risks and costs.

“Other big draws for potential investors are the city’s track record, and its strengths in building partnerships, which can only build confidence in companies coming to the area. Not to mention the Apprenticeship Plus Programme created last year, with City Learning and National Franchise Services, which provides new opportunities for young people in local small businesses, and which over the next three years will double the number supported through Apprenticeship Plus. And of course the city’s ambitious plans to accelerate housing delivery, in particular creating high-quality family housing and giving more choice for older people, will be a big pull.

“But the really big guns will be from the £92 million City Deal, securing government agreements to an accelerated development zone for the city centre and three major sites, which will enable the creation of world-class infrastructure and business environments.”

Three sites on the north bank of the Tyne have also been designated as an Enterprise Zone, including Neptune Yard, which provides opportunity for further growth and a successful offshore marine and energy centre alongside key advances in manufacturing firms.

The ADZ will cover both Newcastle and Gateshead, which Bell feels will be an advantage.

“We’ve got a good track record on joint working already with Gateshead, through for example the NewcastleGateshead Initiative, and it doesn’t actually take away the autonomy or identity of either place.

“We are the north-east. We are Geordies. We are Tyneside people. There’s a realisation of the difficult financial times that we find ourselves in and I think they appreciate that although the politicians are trying to lead the way, we need to work together to provide efficiencies.”

So, if all these investment strategies work, what will be the pay-off for residents? How will they know the plans have worked?

Bell doesn’t have to ponder: “Jobs.” “Our vision is of a high-skill, high-employment

economy, which can attract people to live and work in Newcastle and support residents in finding opportunities to reach their potential.

“There will be greater confidence within our economy and access to new jobs. Younger people will be able to access training apprenticeships to ensure they have a career here. Residents will see development and regeneration happening, bringing an even greater sense of pride. Internationally, our reputation will be strong and our sector strength will be recognised.”

It is not the first time Newcastle has led the way – and Bell is confident the region can do so again.

It’s also a place that gains people’s affection very quickly, says Bell: “People moving to Newcastle may come to the universities for their education. They may come here as a job placement – when they see the quality of life compared to other parts of the country and the value for money, they turn around and say: ‘I’m happy here.’” n

“The really big guns will be from the £92 million City Deal, securing agreements to an accelerated development zone for the city centre and three major sites”

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Catherine Walker is excited by the prospect of major investment decisions from private sector firms in the area over the coming year. Some of these will be sparked by the City Deal announced in 2012.

The deal, which includes four key development sites, will see the two cities reap greater powers over spending from central government, and could prove to be a powerful tool in attracting businesses.

Walker says: “The past year has been about putting the basics in place to market an extremely attractive investment offer for global businesses.”

Newcastle and Gateshead councils have a record of collaborative working and through NewcastleGateshead Initiative, they aim to position their conurbation internationally as a destination for investment.

Walker established a team of two senior inward investment managers working from the Gateshead offices, who oversee UK and European activity.

A consultant covers the USA – the UK’s largest market for FDI – and another is based in India, a high-growth market in ICT, digital, life sciences and biomedicine.

“They are building strategic relationships with cluster organisations. In the US, they identified the

marine technology society that fits with our offshore and marine sector, and they’re working there to push out to their members – it just gives us so much more reach,” says Walker.

To attract the right businesses, the team has focused on promoting the area’s economic strengths. The three priority sectors, being marketed to UK and foreign investors, are creative and digital, marine and offshore, and science and health. Underpinning these are two elements considered integral across the board – advanced engineering and manufacturing, and business and professional services.

Walker says: “We need to build our reputation in those sectors where we excel, focusing on where there is maximum market potential globally and where we have academic excellence with available talent.”

“Manufacturing and engineering cutting across so many sectors means this will remain a core priority, as will business and professional services, a vital part of our economy,” she adds. “Companies need to know that they’ve got access to world-class HR, legal, financial and IT experts, or that they can recruit those skills in large volumes, if they are looking to develop a shared service centre, for example.”

The recently-launched programme, Land:In

Inward, onwardfeature investment and development

Just over a year ago, NewcastleGateshead Initiative appointed Catherine Walker, after her successful spell at Greater Manchester’s respected inward investment agency, MIDAS. Siobhán Crozier and Colin Marrs find out how she views her first 12 months as inward investment director

35

universities rank among the best in the UK. Gateshead College has created a partnership on electric vehicle technology with Nissan in Sunderland, while Newcastle College has set up an energy academy with links to business.

Walker says these intiatives show “how college students can get practical experience so that they’re ready for employment.”

But she is clear that more work can be done on the skills agenda, saying that the area needs to focus on producing more graduates with specialist skills such as design engineers, programmers and games developers.

Walker adds: “So it doesn’t become an obstacle for us over the longer term, we need to ensure that we’ve got those skills in sufficient volume coming out of our colleges and universities.”

She emphasises that her organisation’s relationship with business provides opportunity, arguing that the private sector can be key agents in promoting the advantages of investing in Newcastle and Gateshead.

Walker thinks: “We don’t want companies just to land contracts and go about their business. If they can give something back by acting as ambassadors, or helping to contribute to our skills agenda, or influencing the curriculum at the university for their sector, we want them to make that contribution.” n

NewcastleGateshead, enables overseas investors to quickly establish themselves through a support package of legal and recruitment services with discounts, corporate rates and free office space.

“We tailor the strengths of NewcastleGateshead for individual firms,” says Walker. “If businesses need to tap into the universities and their academic excellence, we’ll highlight that activity. If they need specific infrastructure, for testing or demonstrating products, then we’ll ensure that we highlight what’s available within the proposition as well.”

She adds that the city can help companies achieve significant savings in their operational costs, for example in offshore back office functions, NewcastleGateshead is 40% cheaper than the UK’s main offshore market in Aberdeen.

She says: “We don’t lead on costs, but there are cost advantages, so where it’s relevant within a sector, we will mention them.”

One of Walker’s priorities will be to support companies which are building skills capacity, lauding the apprenticeship initiatives. She says: “It’s so, so important. We’ve got quite a lot of companies, recognising that they need to contribute to the skills that are coming through.”

The area’s universities and colleges are another strength and are linking with businesses for the benefit of both parties. Newcastle and Northumbria


“We need to build our reputation in those sectors where we excel, focusing on where there is maximum market potential globally”Opposite: NewcastleGateshead Initiative’s inward investment director Catherine Walker, with Newcastle in the background. Below: The view from Newcastle – the Sage Gateshead and Millennium and Tyne bridges.

Renaissance partners group joining together to support Newcastle

For more information about these companies visit renaissancenewcastle.com

Aura • Diane Hunter, [email protected]

Newcastle Int Airport • Graeme Mason, [email protected]

Quorum • Fergus Trim, [email protected]

School of the Built and Natural Environment, Northumbria University • Barry Errington, [email protected]

McAleer & Rushe • Stephen Davey, [email protected]

WYG Environment Planning Transport • Dr Nick Bunn, [email protected]

Tees Valley Housing • Doug Ross, [email protected]

Metnor • Gerald Hall, [email protected]

Toffee Factory • Lisa Tolan, [email protected]

http://auranewcastle.com

http://www.mcaleer-rushe.co.uk

http://www.metnor.co.uk/company/property/index.html

http://www.newcastleairport.com

http://www.northumbria.ac.uk

http://www.quorumbusinesspark.co.uk

http://www.teesvalley.org

http://www.toffeefactory.co.uk

http://www.wyg.com/services/services.php?service=58

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Newcastle City Council has a substantial property portfolio, worth more as liquid than capital assets. Colin Marrs talks to Mark Lloyd about how strategic use of its properties enables the council to invest in line with its priorities on economic development

asset management feature

Trading places

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surplus properties have been demolished, with the cleared sites offered to the market for housing. “Sometimes, though, the best option is to sell the building as it stands,” he adds.

He believes the private sector can provide a “reservoir of ideas” for the future use of buildings no longer needed by the council. In fact the council is currently drawing up plans to garner potential solutions for the City Hall concert venue – where the Beatles once played – and the adjacent City Pool. Lloyd says: “Our strategy is to put them to the market, see who is interested and what they can do with it. Often councils can be too prescriptive about future uses, and stifle innovation.”

The process of disposing of its buildings will have another regeneration benefit. Almost counter-intuitively, selling assets to the private sector could help increase the public’s ability to explore them. Says Lloyd: “Residents will now have greater access to some buildings that have been disused or used as council offices – it will change the accessible landscape of the city.”

Although he will not be drawn on the exact scale of the receipts the council is expecting from the sale of its buildings, he says it will be in the “tens of millions”. The money will help the council continue investing. Lloyd says the council will still buy new land where it thinks doing so will aid regeneration and attract private sector investment in the surrounding area. A virtuous circle has been created. n

When Mark Lloyd arrived back in the city of his birth to take up the post of head of strategic property and asset management at Newcastle City Council, the first thing he did was instigate a review of the council’s property portfolio.

As his most recent task, after working away from the north-east for 30 years, was a three-year spell at the London Development Agency, leading the team putting the finishing touches to the Olympic Park’s land acquisition programme, Lloyd immediately set to work on the reverse task in his new role.

He spotted that the council occupied too much property, at a large cost to the city’s ratepayers, and instigated a review of which buildings the council needed to operate, as well as identifying new uses for those surplus to requirements. He says: “Our view was that we should only own a building if it provides essential services or if it helps regeneration.”

Now, 18 months into executing the strategy, Lloyd says the council has made great strides towards realising this aim. Within two years, Lloyd expects all the council’s staff to have been moved from 40 separate office buildings into just three, which will also support the vision to work more co-operatively.

The task of deciding which buildings should be retained included marking each property on its ability to deliver essential services, what the options were, the costs per square metre of occupation, and per staff member, and applying the rule that the council should not own properties it could not afford to maintain. Lloyd says that the property department has had to negotiate with some service departments, “to reach sensible compromises that allow us to deliver essential services in a financially sensible way.”

Another mantra during the process was that the council should retain property that made a financial contribution to council coffers, selling sites with a low rate of return to the private sector and using the receipts to fund other capital investments. He says: “A council can borrow at an interest rate of around 3.5%, so there is advantage to us in ridding ourselves of property which has a yield lower than this. However, the professional investors are interested in the opportunities that lower-income assets can offer.”

Once the list of potential disposals was established, the council approached any community organisations which were using buildings for their activities. These groups were given first refusal on the facilities, with a number grabbing the opportunity. Lloyd points to the Jesmond Pool, which has thrived under community ownership, with an extension opened by Paralympic gold medallist Josef Craig in December last year. A website has also been established to market opportunities to any other community groups that might be interested in acquiring buildings.

The strategy for the remaining surplus sites has varied according to individual circumstances. Some sites are being sold, while others, such as leisure centres, are being offered to operators, with the council retaining ownership. Lloyd says that some

feature asset management

“Our view was that we should only own a building if it provides essential services or if it helps regeneration”

Above: Paralympian gold medalist Josef Craig (right), with cricketer, swimmer and Olympic flame carrier, Will Hardy, at the opening of Jesmond Pool.

Where do regeneration finance professionals go for information and advice? socinvest.co.UK

SocInvest.co.uk provides an enhanced news and information service to regeneration funding and finance professionals. The site is accompanied by a weekly email news service sent to 16,000 subscribers FREE every Thursday.

The site provides news and analysis of all the latest news affecting:/ Private and affordable housing finance/ Council property joint ventures/ Enterprise zones/ Institutional investment in infrastructure/ Sources of European funding/ Government policy and regeneration initiatives

The site also contains an intelligence section linking to all the latest publications affecting the sector, plus special reports on in-depth topics from SocInvest Thought Leaders.

DemonStrate your expertISe on SocInveSt.co.ukIf you would like to become an expert Thought Leader like GVA Financial Consulting, who are currently publishing their report on how the public sector can intervene to enable property finance, then contact Paul Gussar on 0207 978 6840 or [email protected]

Sign up to FREE SocInvest news service at

socinvest.co.UK

www.socinvest.co.uk

feature markets

40

The hipster capital of the north-east

Lonely Planet, 2011

Newcastle UNited

drew an average of

50,517 to home games

last season

(2012/2013)

the third highest in the Premier League and the tenth highest in Europe

Vital statistics

GreGGs, thE UK’s LargEst baKErychain, which has its hQ in nEwcastLE,

rEcordEd nEt tUrnovEr of

£40.6 millionin 2012

3,200 jobs on site at Newcastle International Airport – and a further

4,600 across the regionnewcastle international airport annual review 2012

the sage centre and baltic centre for contemporary art in gateshead both welcomed their

visitor in 20135,000,000th

41

george stephenson built the first intercity rail line in 1824, running between Liverpool and Manchester

markets feature

BesT plAce To ruN IN The uK

rUnnEr’s worLd MagazinE PoLL, 2012

population density (people per sq km)Office for National Statistics, Mid-2012 Population Estimates

Newcastle’s population is280,177

inner London 10,288

newcastle 2,490

Manchester 4,417

Liverpool 4,200

Leicester 4,523

birmingham4,053

outer London4,010

Two Newcastle hotels i

n

UK top 25: staybridge

suites and Jesmond

Dene house

tripadviso

r travellers’

choice 2013

Leazes Homes Limited. Company Limited by guarantee. Registered inEngland and Wales Registered No.6888341. Registered Charity No: 1133627

Independent charity Leazes Homes has built and acquired over 320 homes for social and affordable rent since it was established in 2008.

Affordable homes for people in need

Our achievements• General needs family housing in mixed tenure

developments, resulting in not only homes for rent but an additional 250 private homes for sale.

• Purpose built supported accommodation for specifi c client groups, focusing on where there is currently a lack of good quality suitable accommodation.

• Bungalows for older people.

• Acquisition and modernisation of Blucher Village and Prince Philip Close.

• Government initiatives such as shared ownership, mortgage rescue and bringing empty properties back into use.

In the pipelineWe provide high quality, energy effi cient housing for older people, families and supported accommodation for people in need and have a strategic approach to development that frees up existing housing stock, changing the lives of twice as many people.

We plan to develop 200 mixed tenure and mixed need homes over the next few years and are committed to encouraging our partners to provide training and employment initiatives for local young people on every scheme.

Recent successes• Lord Mayor’s Design Award 2011 in the

Housing category – Station Court

• UKHA 2012, Finalist for Development of the Year – Small Schemes – Station Court

• BRE Global Highest CSH Score 2012-13 –Blakelaw ‘Orchard Way’ Code 6 for Sustainable Homes

The Napier Street development offers

supported accommodation for people with learning diffi culties alongside general needs family homes.

A four storey block of 15 fully accessible two bedroom

apartments was designed in consultation with support providers and offers supported accommodation in a safe and secure non-institutional environment which is fi rmly placed within the

community. Facilities on site are designed to encourage interaction between residents and support the delivery of fl exible care and support services.

Alongside this, ten three bedroom townhouses offer affordable, high quality and sustainable housing for families.

Half of the townhouses have been marketed for shared ownership to assist fi rst time buyers onto the property ladder while the remaining homes are let for social rent.

We provide high quality, energy effi cient housing for older

development offers supported accommodation for people with learning diffi culties alongside general needs family homes.


www.leazeshomes.org.uk

Creating mixed communities

BD13_2424 Leazes homes advert AW.indd 1 03/09/2013 11:52


43

housing feature

A city with a long-held party reputation, Newcastle offers more than a few surprises. Sure, you can live it up until the wee hours in the buzzing centre but you’ll also catch conversations in the coffee houses about digital start-ups and creative hubs. Housing has followed suit, with distinctive clusters of new homes, combining Newcastle’s rich and colourful history with a sense of a city very much on the up. Lucy Purdy finds out more

Den of modernity

Leazes Homes Limited. Company Limited by guarantee. Registered inEngland and Wales Registered No.6888341. Registered Charity No: 1133627

Independent charity Leazes Homes has built and acquired over 320 homes for social and affordable rent since it was established in 2008.

Affordable homes for people in need

Our achievements• General needs family housing in mixed tenure

developments, resulting in not only homes for rent but an additional 250 private homes for sale.

• Purpose built supported accommodation for specifi c client groups, focusing on where there is currently a lack of good quality suitable accommodation.

• Bungalows for older people.

• Acquisition and modernisation of Blucher Village and Prince Philip Close.

• Government initiatives such as shared ownership, mortgage rescue and bringing empty properties back into use.

In the pipelineWe provide high quality, energy effi cient housing for older people, families and supported accommodation for people in need and have a strategic approach to development that frees up existing housing stock, changing the lives of twice as many people.

We plan to develop 200 mixed tenure and mixed need homes over the next few years and are committed to encouraging our partners to provide training and employment initiatives for local young people on every scheme.

Recent successes• Lord Mayor’s Design Award 2011 in the

Housing category – Station Court

• UKHA 2012, Finalist for Development of the Year – Small Schemes – Station Court

• BRE Global Highest CSH Score 2012-13 –Blakelaw ‘Orchard Way’ Code 6 for Sustainable Homes

The Napier Street development offers

supported accommodation for people with learning diffi culties alongside general needs family homes.


apartments was designed in consultation with support providers and offers supported accommodation in a safe and secure non-institutional environment which is fi rmly placed within the

community. Facilities on site are designed to encourage interaction between residents and support the delivery of fl exible care and support services.

Alongside this, ten three bedroom townhouses offer affordable, high quality and sustainable housing for families.

Half of the townhouses have been marketed for shared ownership to assist fi rst time buyers onto the property ladder while the remaining homes are let for social rent.

We provide high quality, energy effi cient housing for older

development offers supported accommodation for people with learning diffi culties alongside general needs family homes.



Creating mixed communities

BD13_2424 Leazes homes advert AW.indd 1 03/09/2013 11:52

“The now modern and fuel efficient family homes have dramatically transformed aspirations andemployability”

44

feature housing

Newcastle’s proud identity is one of many reasons why people choose to call the city home. It may not be particularly big, but it is genuinely very friendly, and the city’s housing offer has to live up to its character. Despite being dominated by terraced housing, many of these are large, impressive-looking Georgian structures, particularly in very centrally located areas of the city.

In recent years, many developments and refurbishment projects have emerged around the city. One of the best-known, the Ralph Erskine-designed Bolam Coyne, is a distinctive cluster of housing that forms part of the Grade II*-listed Byker estate. It was completed in 2012 with all of the 15 homes, both two and three-bed houses, enthusiastically snapped up and now occupied by new tenants.

After sitting derelict for over a decade, Wates Living Space was appointed to carry out its multimillion pound refurbishment for Your Homes Newcastle, in partnership with Newcastle City Council, English Heritage and the Homes and Communities Agency (HCA).

The redevelopment delivers transformation, not only turning Bolam Coyne into useable housing once more but, crucially, retaining the striking architecture which gave it such a power of place and sense of community in the first place.

Michael Drage, one of Bolam Coyne’s original architects, involved in the design and development of the Byker estate in the 1970s, was brought

on board this time too – helping preserve the inventiveness and intimacy of its architecture for generations to come.

Mark Clasper of Ryder Architecture, which assisted Wates, says the willingness on the part of local residents to fight for Bolam Coyne, and the community spirit now very much in evidence there, speaks volumes about the project’s success.

“The redevelopment has transformed the Grade II*-listed estate into a socially and economically stable community. The now modern and fuel efficient family homes have dramatically improved aspirations and employability and the increased safety and security has fostered a true sense of community spirit.”

Joanne Jamieson, regional managing director for Wates Living Space, says: “This was a challenging project for us due to the development’s required heritage conservation alongside the delivery of energy efficient, modern homes. We worked extremely hard to meet current building regulations and Code for Sustainable Homes Level 3 without deviating from the original design intent. We are very proud of the important part we have played in the preservation of this celebrated example of north-east architecture.”

And celebrated it is. Both Bolam Coyne on the Byker Estate and Riverside Dene – the estate formerly known as Cruddas Park, where five 1960s housing blocks have been transformed into modern

Below and previous page: Grade II*-listed Bolam Coyne, with investment of £2 million, is now successfully refurbished as 15 popular two and three-bedroom family homes.

45

housing feature

“With consent in place for 2,500 much needed family homes, through our Core Strategy we are looking at the potential to build more in this area”

and sustainable homes – were nominated in the Housing Design Awards 2012. Both are managed by Your Homes Newcastle, which has also been shortlisted for two UK Housing Awards.

Despite tough financial times, Newcastle City Council counts housing as a priority. The authority recently published its housing delivery partnership framework and is now working on appointing a range of private sector partners to bring forward development sites.

Says chief executive Pat Ritchie: “This is another huge opportunity to support and enable private sector investment in housing, generating investment in the wider economy which links to the council’s Working City priorities to increase training and work opportunities.”

Newcastle Great Park is one major scheme helping fuel future growth. Located three miles north-west of the city centre, close to the A1, this major development has land allocated for a business park, town centre, school, nursery, community facilities and open space, as well as housing. The scheme is being delivered by the Great Park Consortium, which includes the house-builders Persimmon Homes, and Taylor Wimpey. Parts of the development have also been built by Barratt.

“Working with a private sector consortium, our development of Newcastle Great Park is firmly laying the foundations of future growth,” says Ritchie.

“Over 1,100 new family homes are now occupied

and Persimmon say it is their most successful scheme in the region in terms of sales. With consent in place for more than 2,500 much needed family homes, through our Core Strategy we are looking at the potential to build more in this area.”

The council also negotiated a City Deal with government to unlock £1 billion of new investment in housing, employment, better transport and skills, creating at least 13,000 jobs over the next 20 years.

In the city’s west end, the New Tyne West Development Company (NTWDC – a partnership between Newcastle City Council, Barratt Homes and Keepmoat), heads up a £265 million project to deliver 1,800 homes on the ambitious Scotswood redevelopment. Affordable homes provider Tees Valley Housing, part of the Fabrick Housing Group, will own and manage 58 of the 278 new homes being built during the first phase.

Although unexpected ground conditions delayed preparation of the site, construction of the first new homes has now begun.

After signing up to be part of the north-east’s biggest housing-led development project, Tees Valley Housing managing director Doug Ross says: “This fantastic initiative will radically improve the housing offer on Tyneside. This is about much more than providing affordable homes. It is about creating a new community with a rich mixture of backgrounds and skills in a striking and sustainable development.”

The 1,800 homes will be built along the banks of the Tyne – around a quarter of which will be for rent or shared ownership. NTWDC’s development director Duncan Bowman says: “Tees Valley Housing’s track record of providing high quality rented and shared ownership homes across the region means we have added another extremely competent partner to the project.”

Another Scotswood development is the announcement that E.ON has signed an agreement

Above: The regional best-seller for Persimmon Homes at the consortium development in Newcastle Great Park.

46

feature housing

to provide heat and hot water to the new build homes through a district heating network, comprising combined heat and power technology, which could reduce carbon emissions by up to 35%.

Jeremy Bungey, head of community energy at E.ON, says: “This latest example of our community energy schemes is set to help transform Scotswood into a prime example of an energy efficient community. Through our first community energy project in the north-east, we’re helping to make decentralised energy a more viable and accessible form of heating and hot water.”

Rich history is a key theme in the Ouseburn Valley, home to key cultural, heritage and creative assets including the Victoria Tunnel, Ouseburn Farm, Stepney Bank Stables and live music venues and pubs. Increasingly becoming known as Tyneside’s creative quarter; it is home to the Lower Ouseburn Valley which includes a number of key development sites and links the East Quayside with the Ouseburn Valley. A market appraisal revealed that up to 20,000sq m of commercial space and up to 250 homes could be delivered there.

The council and the HCA have signed a Framework Development Agreement with Carillion-Igloo, controlling a pipeline of development that the consortium is looking to develop over the next 10 years. The first of these, the East Bank site opposite the landmark Toffee Factory, has recently started on site with a development of 76 residential units. There will be a mix of one, two and three-bedroom apartments and two, three and four-bedroom houses, laid out in five terraces of three and four-storey units with three four-storey tower houses punctuated between the rows of houses.

With plenty of amenities – the huge Town Moor common land, the effiecient Metro system and the city’s own airport, the proximity of the beautiful, 400-square mile Northumberland National Park and a comforting sense of city identity – Newcastle is not short of pull factors. As extensive improvements to the housing stock continue, residents both recent and established are benefiting – and the city’s growing reputation for quality housing development combines with an array of attributes that make so many people love to live in Newcastle. n

Below: Live in metropolitan Newcastle, explore the stunning natural beauty of Northumberland National Park – Sycamore Gap at Hadrian’s Wall, was used in Robin Hood Prince of Thieves.

Part of the Fabrick groupwww.fabrickgroup.co.uk

M0042522 Renaissance Advert V2.indd 1 02/03/2012 08:06

www.fabrickgroup.co.uk

A bright futurefor Scotswood

The exciting transformation of Newcastle’s west end has begun on the banks of the famous River Tyne.

The Rise is the first phase of a £265 million regeneration project which will deliver 1,800 modern homes, while creating jobs and training opportunities for hundreds of local people.

The 60 hectare site will feature its own community energy centre and carefully designed, green public spaces to support the development of a truly green and sustainable community.

Behind the North East’s largest housing led regeneration is New Tyne West Development Company, a public-private partnership comprising Newcastle City Council and developers Barratt Homes and Keepmoat.

For further information log on to www.therise.info

An exciting new development a stone’s throw from Newcastle City Centre

www.therise.info

renaissance #8

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