Plans have been unveiled for a £12m industrial development on North Tyneside which is expected to bring 200 new jobs to the region.
The Northumberland Estates has announced plans to bring forward the region’s largest speculative industrial development in more than eight years – a landmark scheme set to be constructed on a 12 acre site at Tyne Tunnel Trading Estate.
The industrial team at Naylors Chartered Surveyors have been appointed as letting agent on the scheme, called Axis 19, along with HTA Real Estate, with both firms heralding the prime project as a direct response to the growing strength of the industrial market in the area.
Once the scheme is complete it will provide up to eight Grade A industrial or warehouse units ranging from 14,000sqft to 80,000sqft, to cater for the region’s rising demand for larger industrial units.
The development, which will be called Axis 19, will appeal to a variety of occupiers including; offshore, manufacturing, logistics, and engineering businesses.
Naylor’s head of industrial agency, Keith Stewart said: “Axis 19 is a milestone scheme which marks a significant step forward for industrial development in the region.
“The Northumberland Estates’ commitment to such a substantial investment is a clear signal of improving confidence in the market.
“There is a severe lack of larger Grade A industrial space within the North East and we anticipate a high level of interest in the units.”
“The prime location of the development close to the A19 and just minutes from the Tyne Tunnels and Port of Tyne provides excellent connectivity for occupiers.
“The continued growth of the offshore industry is of great significance to the North Tyneside economy and the developers see this as a primary target market for the scheme.”
The Northumberland Estates, which acquired the development site from Gladedale in 2012, will start construction of Phase I of the development, comprising 28,000sqft, this month, with completion scheduled for June 2015.
Michael O’Driscoll of The Northumberland Estates said: “Strong occupational markets combined with an extremely limited development pipeline has led to a shortage of good quality industrial stock in the region. “We have had a number of expressions of interest in the Phase 1 buildings and this has ultimately given us the confidence to start building on a speculative basis.
“We are extremely confident that both buildings will be let prior to practical completion.”
The Axis 19 announcement comes weeks after Durham-based Ravensworth Property Developments appointed a main contractor to construct the first new speculative commercial development in Gateshead since pre-recession times.
Set on a 6.5-acre site next to the A1(M) at Birtley, the £7m Portobello Trade Park was welcomed as an important turning point in the changing fortunes of the region’s property market.