One NorthEast goes West with £30m regeneration contract

Jul 19 2008 by Andrew Mernin, The Journal

A PROMINENT business organisation has voiced its disappointment over regional development agency One NorthEast’s decision to award a £30m regeneration contract to a firm based outside the region.

One NorthEast yesterday announced a property regeneration partnership with Merseyside construction firm Langtree Group which will see 24 of the agency’s industrial and commercial sites developed over the next 15 years.

Langtree will manage the sites and bring in substantial resources to modernise estates, undertake site remediation and development work. However, the North East Chamber of Commerce – which is currently running a campaign aimed at boosting the public sector spend on the region’s economy – has voiced its disappointment at the decision to hand the expansive contract to a non-North East company.

Andrew Sugden, the NECC’s director of membership and policy, said: “It’s obviously disappointing that One NorthEast has been unable to identify a partner with existing strong links to this region.

“However, it’s now crucial that this new partnership is successful and delivers the very best for the North East and its businesses. An early commitment from the successful bidder to locate in the North East must be part of that.”

Langtree yesterday confirmed plans to set up a North East base which will employ a small number of people.

Meanwhile, One NorthEast defended its choice of partner and claimed that the expertise of Langtree would bring the maximum economic return to the region.

Ed Rowley, acting director of regeneration at agency, said: “The North East will be the winner from this partnership.

“The partnership is geared towards securing the maximum possible return on investment. It will lever in tens of millions of pounds worth of private sector investment into the region, creating valuable new jobs in the construction sector through sites and premises for new business.

“The process to select Langtree as the preferred partner was conducted through a full and thorough European tendering process. Their experience and expertise are second to none with a proven track record of delivery.

“The company is looking to open an office in the region to enable the delivery of this partnership.”

The 24 sites marked for regeneration include Newburn Riverside and East Quayside in Newcastle, Queens Meadow in Hartlepool and Meadowfield in Durham.

On the back of the partnership with One NorthEast, Langtree plans to grow its presence in the region and is currently considering a move into existing office space in Stockton. Langtree’s group development director Stephen Barnes said: “The property regeneration partnership is a business opportunity with great new potential and one which, if managed properly, will reap great benefits for the region.”

The urban renewal specialist has completed some previous work in the region through Network Space – a coalfield regeneration partnership with national agency English Partnerships.

Mr Barnes said: “We are very keen to establish a critical mass of activity in the North East and build on the success we have enjoyed to date with our Network Space venture in the region.”