Written by DC Member Chris Dobson
Newcastle City Council has announced a new partnership with PfP igloo to complete the second phase of Newcastle’s Stephenson Quarter, the high-profile development which attracted a mixed-used of occupiers such as the Crown Plaza hotel and Convergys to its first phase writes Chris Dobson.
Patrick Matheson, Partner, Knight Frank, and adviser to the City Council, commented. “This second phase will be a mixture of new build Grade A offices and residential as well as re-purposing existing buildings. It is a part of the City which has a huge historic fabric and which is a successful leisure and business location that adjoins Central Square and Newcastle’s Central Station.”
The new joint venture company Stephenson Works LLP will facilitate the regeneration of 4.3 acres of brownfield land behind Central Station creating an estimated 2,000 jobs.
PfP igloo is the collaboration between fund manager, PfP Capital and igloo Regeneration that is undertaking development of the Ouseburn Valley in Newcastle.
The final phase will see the remainder of the site’s historic buildings brought back to life combined with new residential development, office space, leisure and public realm creating a vibrant quarter for the regional economy to attract residents, businesses and thousands of visitors who pour into the region every year through the Central Station. An estimated £104m of investment will transform six plots, all council owned land, which will be developed by the new partnership over a seven-year period.
Cabinet Member for Employment and Culture, Cllr Ged Bell, hailed the announcement as great news for the city as it looks to recover from the pandemic. He said: “We must do everything to kick-start economic activity in the wake of COVID-19 if the city is to bounce back, so the announcement of PfP igloo as our development partner is incredibly important.
“With its historic buildings, the Stephenson Quarter is a gem of a development site. We’ve had great success with the previous developer the Clouston Group bringing forward the hotel, technical college and offices, but this new phase will accentuate the heritage of many of its listed buildings which makes the site unique. The jobs that will be created – many of them in the construction sector – will be extremely valuable to our economic recovery and give residents new opportunities.”
John Tatham, PfP igloo Director, said: “We are excited to be involved in taking forward development of Stephenson Quarter as it gives us an opportunity to build on our success in the Ouseburn Valley and continue the transformation of another key part of Newcastle city centre.”
Under the new partnership, the Council will contribute the land and the developers will contribute an equal share of capital investment to bring plots forward. The Council has the option to invest capital in plots should it wish to do so.