£1.4m European money for North East business space

Two key North East SME business parks will go ahead following after securing over £1.4m European investment.

Space for SMEs will be developed in Washington at Team Farm Park and in North Tyneside at West Chirton North Starter Units by Hellens Investments LLP.

The money comes from European Regional Development Fund Competitiveness Programme 2007-2013 which is managed by the Department for Communities and Local Government, with match funding provided by the company and loans from North East LEP’s Growing Places Fund.

£500k will be used to construct the Teal Farm Park Phase II development which comprises four units ranging from 4 - 7,000 sq ft, designed for manufacturing or distribution enterprises. Six jobs will be created as work is expected to be completed in March 2014.

£920k of ERDF cash will be used to create 17 starter workshop units at West Chirton North Starter Units, creating three jobs. The first tenants are expected to move in by August 2014.

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.”

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