Following a global search for a developer to complete the final phase of Newcastle’s £200m Stephenson Quarter development, Newcastle City Council has unveiled that it has selected a partner. PfPigloo has been selected and will form a joint venture company entitled Stephenson Works LLP. The bidding process was managed by Knight Frank.
PfPigloo is a collaboration between fund manager PfP Capital and igloo Regeneration which is currently working on the regeneration of the Ouseburn Valley in Newcastle.
The second and final phase of the development will see the remainder of the site’s historic buildings being “brought back to life”, combined with new homes, office space, leisure and public realm. The plan is to create a vibrant quarter for the regional economy that will attract residents, businesses and thousands of visitors.
An estimated £104m of investment will transform six plots, all council-owned land, which will be developed by the new partnership over a seven-year period.
Patrick Matheson, partner at Knight Frank Newcastle and advisor to the City Council, confirms the second phase was launched at MIPIM in 2019.
Matheson said: “This second and final phase will be a mixture of new build and re-purposing some fantastic existing, historic buildings. This is incredibly exciting news for the city and I am so pleased to have been involved in selecting a developer, who I know will do a brilliant job of delivering the Council’s ambitious vision for the site.
“Stephenson Quarter is a part of the city that has a significant historic fabric and this final phase will create a premium leisure and business destination. Its close proximity to Newcastle’s Central Station makes it a stand-out location.”
Councillor Ged Bell, Cabinet Member for Employment and Culture, hailed the announcement as great news for the city as it looks to recover from the pandemic.
Cllr Bell added: “We must do everything to kickstart economic activity in the wake of COVID-19 if the city is to bounce back, so the announcement of PfPigloo as our development partner is incredibly important.
“With its historic buildings, the Stephenson Quarter is a gem of a development site. We’ve had great success with the previous developer the Clouston Group bringing forward the hotel, technical college and offices, but this new phase will accentuate the heritage of many of its listed buildings which makes the site unique.
“The jobs that will be created – many of them in the construction sector – will be extremely valuable to our economic recovery and give residents new opportunities.”
John Tatham, director at PfPigloo, said: “We are excited to be involved in taking forward development of Stephenson Quarter as it gives us an opportunity to build on our success in the Ouseburn Valley and continue the transformation of another key part of Newcastle city centre.”
Under the new partnership, the council will contribute the land and the developers will contribute an equal share of capital investment to bring plots forward. The council has the option to invest capital in plots, should it wish to do so.
This post has originally been featured in Property Wire.