Priority Space has secured a £2.5 million funding package to transform a County Durham brownfield site into a landmark commercial development at Hutton Court on Consett Business Park. The scheme will convert the former colliery into 14 new-build units designed for small and medium-sized enterprises (SMEs).
Funding Breakdown and Support
The funding comprises a £2 million loan from FW Capital under the North East Commercial Property Investment Fund, backed by North East Mayor Kim McGuinness, and a £500,000 incentive from the North East Mayoral Strategic Authority to address the financial viability gap. The inward investment scheme is expected to create new jobs and stimulate local economic growth.
Development Details
The units, set for completion this month, feature 5.7-metre eaves, electrically operated insulated sectional overhead doors with protection bollards, electric car charging ports, solar reflective double glazing, shared forecourts, service yards, and designated car parking with visitor spaces. The site is near the Number One Industrial Estate, which spans 790,000 sq ft and houses over 106 businesses including Legrand Electric, CAV Aerospace, Howden Joinery, and Wolseley Group.
Developer and Fund Manager Comments
Lee Buchanan, director at Priority Space, said: “This investment has enabled us to kickstart the Hutton Court development in Consett Business Park and regenerate a previous brownfield site that had been a working colliery in the past. Prior to receiving the funding, we had been struggling to get the site moving, needing a significant working capital injection to support our ambitions.” He added that the company is already in discussions with SMEs looking to lease or purchase space, and plans further developments across the North East.
Chris Dixon, fund manager at FW Capital, said: “Priority Space is bringing to Consett quality new industrial units which can be used by a diverse range of businesses. This will have a significant impact on the local economy by bringing further new jobs and inward investment. It’s also fantastic to be able to combine funds with The North East Mayoral Strategic Authority to help get this development started and come to fruition.”
Fund Background
The North East Commercial Property Investment Fund is a £35 million fund providing loans of up to £7 million for speculative and non-speculative new build or refurbished commercial projects.
