From Textile Legacy to Modern Retail Hub
The transformation of a historic Sunderland factory site has entered its crucial final stage, marking a significant milestone in the city's economic regeneration. UK Land Estates has commenced preparatory works for the development of drive-thru units for major brands Greggs and Starbucks at the former Dewhirst clothing factory on Pennywell Industrial Estate.
Revitalising a Brownfield Site
This development represents the concluding chapter in the regeneration story of the seven-acre site that once housed textile manufacturer Dewhirst. The business, which supplied Marks & Spencer and employed hundreds across the region, moved manufacturing offshore in the early 2000s. The closure of the Leechmere site in 2002 and the Pennywell factory a year later resulted in approximately 800 job losses locally, with thousands more affected across the UK.
The site remained largely vacant for nearly two decades until UK Land Estates secured planning permission in 2022 to create what they describe as 'a new gateway' into Sunderland. The developer has appointed STP Construction as main contractor, with work beginning this month.
Substantial Investment and Regional Impact
Tim Witty, development director at UK Land Estates, expressed his enthusiasm: "It's fantastic to see preparatory works get under way on this final phase of development. UK Land Estates has a track record of regenerating brownfield sites across the region, and this is a fine example of how we are continuing to do just that."
The creation of the two new units at Pennywell will push UK Land Estates' total investment at the site beyond £10 million. This forms part of a broader £35 million investment drive during this financial year, which will see the developer construct over 270,000 square feet of new, Grade A industrial and warehousing space alongside several retail outlets across the North East.
Mr Witty highlighted the regional context: "The North East has a huge dearth of available, high-quality industrial and warehousing space, and we have witnessed this first-hand. Over recent years, we've delivered several major industrial schemes, the majority of which have been snapped up prior to completion."
Aldi, Wickes and KFC have already established presence on the regenerated site, demonstrating the commercial viability of the location. The addition of Greggs and Starbucks will complete the retail offering, creating what Mr Witty describes as "new retail facilities in the city while also creating jobs for local people."
Looking to the future, Mr Witty confirmed UK Land Estates' commitment to further regional investment: "Should the right opportunities present themselves, we are willing and able to develop even more sites, so long as the conditions are right, so hopefully there is even more to come."
