Global real estate advisor CBRE has been appointed to spearhead the operator selection process and development funding strategy to deliver Sunderland’s Crown Works Film Studios.
The agent, renowned for its global expertise in large-scale commercial and regeneration projects, will act on behalf of Sunderland City Council to start immediate engagement with potential operators, investors and developers, managing new interest to deliver a studio at the site. CBRE advised SKY on their partnership with Legal and General to deliver Sky Studios Elstree, a 12-sound-stage studio in Hertfordshire.
CBRE will work to secure operators, partners and private investment needed to transform the 80-acre site on the banks of the River Wear into a 1.5 million sq ft, world-class film and TV production complex, with the aim of a developer breaking ground in the new year.
The appointment of CBRE marks a significant milestone for the multi-million-pound development. CBRE will bring its global reach and sector expertise to identify and secure the best operator, while also advising on the structuring of the development funding strategy to ensure the successful delivery of the project.
This supports the council’s wider ambitions to place Sunderland firmly on an international stage and, along with other major regeneration projects currently taking place, keep attracting inward investment into the city.
Councillor Michael Mordey, leader of Sunderland City Council, said: “Appointing CBRE is a pivotal and strategic step in securing the right investor and development partner to deliver this transformational scheme. Their global reach, experience and industry knowledge is highly impressive and we, and they, are very positive and determined that Crown Works Studios will be delivered but now with a new partner. Our ambition has not wavered, so we will keep pushing forward.”
Planning permission is already in place for the first phase of Crown Works Studios, with outline consent for future phases, and this is supported by a public funding package worth £120 million secured from the UK Government, North East Mayor Kim McGuinness and the North East Combined Authority. Remediation of the site is currently underway, funded through an initial £25 million investment.
North East Mayor Kim McGuinness commented: “We have made the creative industries a central part of our Growth Plan for the region, and this site has the potential to power an entire industry in our region, opening new opportunities for local people and building on our reputation as a prime location for major film and TV drama. With CBRE now on board, we are very much looking ahead and taking a major step towards turning this vision into a reality.”
CBRE will now begin comprehensive market engagement to identify preferred operating and funding partners, it is anticipated, by autumn. The new selected partner(/s) will be responsible for delivering the first phase of the development and unlocking the full potential of the site.
The project is expected to attract private sector interest, buoyed by the scale of public investment and the strength of demand for high-end film and TV production space, especially more recently as production in the North East region surges. Figures from North East Screen show a 131per cent increase over three years in production spend in the region.
Alison Gwynn, Chief Executive of North East Screen, added: “We are witnessing a landmark moment for creative industries here in our region and Crown Works Studios will provide ground-breaking facilities and the infrastructure we need to build on our recent 131% growth in production. It will support a sustainable, thriving sector that is growing month on month, year on year right here in the North East.”
Andy Byrne, Northern TMT Lead for CBRE, added: “CBRE is excited to bring this opportunity to the market. Sunderland City Council is at the forefront of regeneration in this region and have ambitious plans to see world-class film and TV production space brought forward to match the demand for purpose-built studio space. This scheme is set to be a catalyst for great things within the region.”
For more information about the Crown Works Studios investment opportunity, please contact CBRE at Andrew Byrne, 07823 520 540 andrew.byrne@cbre.com
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