Powerful tenant for riverside scheme

Jun 11 2008 by Iain Laing, The Journal

ENERGY firm npower has taken more than 100,000sqft of office space at Terrace Hill’s pioneering £300m Baltic Business Quarter by the River Tyne in Gateshead.

The power company is leasing 110,000sqft in three office buildings, with an option on a further 80,000sqft, at £17 per sqft. The building will be capable of accommodating more than 900 people.

Martin Vickerman, director of developers Terrace Hill, said: “This is an exciting deal for the Baltic Business Quarter – and a tremendous boost for the economy of Gateshead, Newcastle and the North East.

“It underlines the fact that we are attracting quality occupiers from across the country and Europe.

“It is a ringing endorsement of the development and proves that significant deals can be done in a testing economic climate, provided the product is right. Fifty acres of derelict land is now being transformed into a thriving commercial community”.

Work on the office buildings, which are to the west of the site, will begin in the autumn, ready for occupation before the end of next year.

Julie Jaglowski, npower’s Residential Customer Services Director, commented: “npower have been impressed by the location and opportunities within Gateshead.

“Over the last year, we have looked at many alternative sites in the area trying to find the right combination of location, building design, use of space and working environment fitting for a successful and leading energy company and our people.

“We believe that the Baltic Business Quarter fulfills our needs and we look forward to the time when we move in.”

The Open University has already bought a 19,500sqft office building at Terrace Hill’s Baltic Business Quarter which will be ready for occupation this summer. At the same time, Terrace Hill is building a speculative 24,000sqft office block called Baltimore House, which will also be ready this summer.

Terrace Hill, which is in partnership with Gateshead Council, believes Baltimore House will attract a good deal of interest and will satisfy the pent-up demand for much-needed quality office space in Newcastle and Gateshead.

Martin Vickerman said: “We estimate that this development will ultimately create up to 7,000 jobs, playing a crucial part in the regeneration of Gateshead. The Baltic Business Quarter is Terrace Hill’s most prestigious and ambitious scheme in the North East.”

The agents for the development are the Newcastle office of Sanderson Weatherall and DTZ. Robert Patterson, director of office agency at Sanderson Weatherall, said: “To have achieved such a significant market pre-letting at Baltic Business Quarter is indicative of the quality and stature of the scheme.

“Reinforcing our prime objective to position the quarter as one of the North East’s most prestigious commercial strongholds, the deal also boosts Baltic’s presence in the international arena. The arrival of npower will undoubtedly act as a catalyst to drive the development forward to the next successful stage,” he added.

The leader of Gateshead Council, Mick Henry, said: “We’re delighted to welcome npower to Gateshead – we know they’ll find everything they need here, and much more besides.

“We’ve worked hard to promote Gateshead as an international investment opportunity and we always intended our cultural developments on Gateshead Quays to act as a trigger to encourage private-sector investment in Gateshead.”