An overview into the property and development market in South Tyneside.

French car parts manufacturer SNOP is relocating to International Advanced Manufacturing Park (IAMP), creating more than 100 new jobs.The company, which makes components for the likes of Peugeot, Audi, Renault, Mercedes, Volkswagen and Seat, as well as Nissan, will be the first to relocate to IAMP and will take more than 17 acres of the first phase of IAMP, opening a £15m 235,000 sq ft state-of-the-art factory and office space, with the potential to expand to 331,000 sq ft. Plant director at SNOP UK, David Brander, said: “We are delighted to be the first business to make the International Advanced Manufacturing Park our home.

“Sunderland and South Tyneside have much to offer to manufacturing businesses like ours. We know that we can enjoy direct access to a fantastic talent pool, as well as benefiting from the other excellent assets this site offers, including outstanding connectivity to road, sea, air and rail links.”Councillor Iain Malcolm, Leader of South Tyneside Council, said: “The announcement that SNOP will become our first occupier on site is great news, and we are looking forward to welcoming more businesses to IAMP over the coming weeks, months and years.”

Featured Property-

1 Brooklands Way, BoldonWork has completed on a £1.2million project in South Tyneside. Avon Capital Estates (ACE) has speculatively extended a 27,500 sq ft industrial unit at Brooklands Way, on Boldon Business Park, with a 20,000 sq ft addition.The newly-created 47,500 sq ft unit’s proximity to Nissan would make it particularly attractive to an automotive supplier, but it is equally suitable for a range of other industrial and warehouse uses. The property, which comprises an open-plan factory/warehouse space with a two-storey office block and a dedicated yard and parking areas, has planning consent for B1, B2 and B8 uses, allowing maximum flexibility.

Simon Haggie, industrial property specialist and partner at Knight Frank Newcastle, said “The proximity of the estate to the A19 and the onsite retail, leisure and hotel facilities makes this an attractive proposition for any occupier.”“This development is very positive news indeed for South Tyneside. Speculative industrial developments are badly needed in the North East so we are pleased that ACE has had the boldness to push forward with this development. We have been with ACE every step of the way in terms of helping to shape the plans, and are confident the property will attract strong interest.”

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South Tyneside Property Outlook

An update on the International

Advanced Manufacturing

Park, plus details of successful deals and properties available

in the borough.

Edition 4

For more information on the commercial properties available within South Tyneside and how the team can support you to locate here, contact us:

| www.investinsouthtyneside.co.uk | 0191 424 6262

| business@southtyneside.gov.uk |@STyneBusiness

| InvestSouthTyneside

Featured Deals:

Infinity ParkThe £5m scheme at Monkton Business Park in Hebburn comprises of three new high specification industrial units developed by Washington-based Hellens Group.Following the recent completion of the project, HTA Real Estate has concluded the letting of a 10,850sq ft unit to asbestos consultancy, Nichol Associates and the largest unit of 31,524 sq ft has been taken by Essex-based wood product manufacturer, Falcon Panel Products Limited.Nick Atkinson, director at HTA Real Estate said: “To secure the first occupiers at a brand new industrial scheme within a few months of completion is a fantastic achievement. “With strong interest in the final unit, it would be great to see more speculative

development projects come forward in the region to help fulfil the continued demand.”Gavin Cordwell-Smith, chief executive at Hellens Group, added: “We are very pleased to welcome our first tenants at Infinity Park which means that we have let 75% of the space on a development which was only completed in August. We now only have one unit remaining which is 15,901 sq ft. Hellens Group is proud to be one of just a small handful of developers bringing forward new speculative industrial schemes in the region.”The joint letting agents for Infinity Park are HTA Real Estate and GVA.

Didcot WayNewcastle-based property investment firm The Hanro Group has

acquired two industrial sites in South Tyneside with the £2.34m purchase of units 4 and 9 on Didcot Way, Boldon Business Park.Unit 9 Didcot Way (21,895 sq ft) has been let to laser technology business Trotec Laser on a 10-year lease. Unit 4, is a detached 17,146 sq ft building, newly refurbished but currently vacant.Erin Peart, Hanro’s head of property, said: “Hanro is focussed on creating a balanced portfolio of commercial assets and the industrial sector is of particular interest to us at the moment. This deal perfectly illustrates our confidence in the

North East market with both properties offering good potential for rental growth, given the demand and supply dynamics in this locality.”The investment agency team at Newcastle firm Naylors Chartered Surveyors completed the acquisition deal for Hanro.Naylors director Chris Donabie commented: “Didcot Way ideally matched Hanro’s requirement for good quality industrial investment stock in locations where there is constrained supply and healthy occupier demand. At an early stage we identified that the properties presented an ideal opportunity and we were able to complete a successful off-market acquisition.”Chris added: “Following the comprehensive refurbishment of unit 4, we anticipate that a new tenant will be secured in the coming months, given the strength of current interest.”

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Simon Haggie Knight Frank

Speculative confidence in South Tyneside

The news that Avon Capital Estates is bringing a 50,000 sq. ft. industrial property to the local market is further proof that confidence in

speculatively developing large units is high.

We’ve witnessed demand for sizeable units between 50,000

and 150,000 sq ft in the North East steadily increase over the past 12 months.

This is partly fuelled by the launch of Nissan’s next

Qashqai vehicle in 2020 and, interestingly, Nissan has been encouraging its suppliers to

move into our region to avoid potential duties post-Brexit.

Boldon Business Park, thanks to its close proximity to the A19 and its on-site retail, leisure and hotel facilities,

makes this location an attractive proposition for any occupier – not least one that has links to the formidable, automotive giant Nissan.

There is undoubtedly more on-spec industrial

development to come. Watch this space.

Simon Haggie, Partner at Knight Frank, 0191 594 5009

simon.haggie@ knightfrank.com