Sunderland’s largest ever regeneration programme will soon get under way after a joint venture between the city council and construction giant Carillion was signed.
The firm, which employs several hundred people across the North East, was announced a year ago as the preferred bidder by Sunderland City Council to be its strategic partner to deliver the city’s regeneration programme.
Siglion, a new joint venture company formed between Carillion and the council with Igloo Regeneration providing development and asset management services, is now officially under way.
The joint venture agreement to regenerate and develop major sites across Sunderland has been signed, paving the way for the 20-year project to get started, after the announcement on the London Stock Market that the venture has achieved financial close.
The company, branded as Siglion, will redevelop key areas across Sunderland in an ambitious, long-term initiative costing millions of pounds and there will be at least £100m of development by the firm over the first eight years.
The firm has also acquired an investment portfolio of industrial, retail and office property across the city from Sunderland City Council, all of which will be actively managed by Siglion to increase their value, job opportunities and economic return to the city and wider region.
Sunderland Council leader Paul Watson said: “It’s fantastic news that Siglion can now drive forward the city’s largest-ever development programme. The signing of this contract is a major step forward in propelling regeneration and economic growth that will transform key city sites.
“It also ramps up our ability to attract new investment, following on the major works currently being carried out in Sunderland. We are excited about working with our partners who are as committed as we are to the long-term success of the city.”
John Tatham, partnerships director of Igloo Regeneration, said: “In agreeing the details of this joint venture with the City Council, Igloo and Carillion are dedicating investment and resources to deliver this regeneration, spearheading a step-change in the Sunderland economy.”
Neil McMillan, development director, Carillion Developments said: “Signing this transformational joint venture is an important milestone for Siglion and Sunderland. We now look forward to engaging with local businesses and key stakeholders who are keen to play their part in helping to deliver this vision for Sunderland.”
In a market note to shareholders, Carillion added: “The innovative programme, which will initially focus on the redevelopment of key sites across the city, is potentially worth up to £800m to Carillion over the 20 year life of the regeneration programme.
“The signing of this contract is a major step forward in propelling regeneration and economic growth that will transform key city sites. It also ramps up our ability to attract new investment, following on the major works currently being carried out in Sunderland.
“We are excited about working with our partners who are as committed as we are to the long-term success of the city.”