ERDF Funding Received
EUROPEAN investment will ensure two new developments will be built for SMEs in Washington and North Tyneside, creating jobs and stimulating business growth.
Hellens Investments (Washington) LLP has been awarded a total of over £1.4m investment from the European Regional Development Fund Competitiveness Programme 2007- 2013, which is managed by the Department for Communities and Local Government with match funding being provided by the company and loans from the North East Local Enterprise Partnership’s Growing Places Fund.
In Washington, Teal Farm Park Phase II development will be constructed with over £500,000 ERDF. Four units ranging from 4 – 7,000 square feet will be built designed for manufacturing or distribution enterprises and for start up and move on businesses.
Six jobs will be created as a result of the development which will be built to BREEAM very good standard and built by March 2014 with the first tenants moving in by June 2014. The development complements Phase 1 of Teal Farm Park which was built in 2008 and was fully occupied after two years of completion.
In North Tyneside, the development of West Chirton North Starter Units will be constructed with nearly £920,000 ERDF, creating 17 quality, sustainable starter workshop units designed for small businesses in the borough. Three jobs will be created as a result of the development which will comprise 3,174 sq m internal space.
It will be built to BREEAM very good standard by May 2014 with the first tenants moving in by August 2014. No new units of this size have been constructed in North Tyneside since 2004.
Cllr Foster, Deputy Chair of the North East European Regional Development Fund Programme Local Management Committee, which engages key partners in the overseeing of the strategic delivery of the Programme in the North East said:
“Following the approval of ERDF investment, the developments at Washington and North Tyneside will stimulate business growth through the construction of a number of high quality work units, creating jobs, ensuring inward investment and addressing a shortage of such workspaces. These are essential criteria to support local growth and rebalance the economy.”
Gavin Cordwell-Smith, Chief Executive of the Hellens Group, the Washington based property developer and land regeneration specialist said:
“Teal Farm Park and West Chirton will be two of the first speculative industrial developments in the whole of the North East since the credit crunch. Both of these developments have been stalled for a number of years. Even though Hellens have a proven track record for delivering employment space we have been unable to progress our plans due to a lack of finance available to SME businesses in the current economic climate.
“We are therefore very grateful to the Department for Communities and Local Government for providing grants from the European Regional Development Fund. This funding, along with loans from the North East Local Enterprise Partnership, is allowing both of these developments to proceed. They will both bring significant economic and employment benefits to the North East.”
Both developments will support SME formation and support existing SMEs looking to stay in the area who might otherwise struggle to find quality business space and support inward migration of new entrepreneurs to the North East. The projects will create space which exceed environmental standards, allowing SMEs to enjoy energy efficiency savings and meet customer requirements for supply chain carbon reduction.
The European Regional Development Fund Competitiveness Programme 2007-13 is bringing over £300m into North East England to support innovation, enterprise and business support. It will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the productivity by £1.1bn per annum.