PLANS for a world-class film studio complex are being presented to the investment market, with the aim to put in place a final funder and developer later this year.
Sunderland City Council as land-owner and project lead is moving to test the appetite of the wider investment market for the Crown Works Film Studios opportunity, and is appointing a specialist agent who will be engaging investors, including the likes of Fulwell Entertainment who were part of the joint venture which first tabled proposals for a North East studio and continue to champion the project.
The council have confirmed that – as is necessary in public sector projects – they will be testing the investment market, to ensure that they secure the best partner to push ahead with the studio plans. The process, which will take place over the coming months, gives interested parties a window of opportunity to commit to develop the first phase of the studios. A final decision will then be made by Sunderland City Council on who will progress with the studios.
As the development of Crown Works Studios, which has been backed by North East Mayor Kim McGuinness, will involve considerable public sector support in both grant and the disposal 30 hectares of land on the banks of the Wear – market testing is required to ensure the proposed developer(s) plans represent the best opportunity for the project to demonstrate the return required on the public investment.
Councillor Michael Mordey, leader of Sunderland City Council, said: “These studios represent a game-changing opportunity for the city and we cannot wait to see them progress.
“There’s an absolute commitment to deliver the best possible delivery partner to move this forward and we expect that we will have funding confirmed and ready to progress the first phase of the studios by the time remediation works complete later this year.”
A programme of remediation work is now on-site, instructed by Sunderland City Council using funding from UK Government unlocked through the North East Combined Authority, to prepare the former Crown Works site for development.
Planning permission has been secured for Crown Works Studios and a total funding package worth £120m to support its development is available, thanks partly to the efforts of the local authority in lobbying Government to support the development of a film studios on the site.
The Government’s support for Crown Works – which was channelled via the North East Combined Authority – represents a significant incentive that underpins the commercial viability of the scheme for investors looking to get involved in the first phase of its development.
Fulwell Entertainment remains a committed champion of the scheme. Other key supporters include North East Screen, the region’s screen agency, which is headquartered in Sunderland.
North East Mayor Kim McGuinness said: “We have big ambitions to grow the North East’s creative sector and Crown Works Studios in Sunderland is a key element of our vision, alongside opening the first major label recording studio in the region and opening a national centre for new writing.
“We’re supporting Sunderland City Council in the job of preparing the site, which can eventually be the largest film and TV production complex in the UK outside of London and the South East.
“In the process we’ll create thousands of new jobs for local people and end the days where people have to leave the North East to pursue a career in creative industries. This is why the project has to date secured a public sector funding package worth £120m including £25m which we have put in to begin preparation of the site at Pallion on Sunderland Riverside. We remain confident that this will be a flagship site in a thriving industry for years to come.”
The studios will provide infrastructure that North East Screen Chief Executive Alison Gwynn said will underpin the region’s success in the sector.
She said: “The region is 100% committed to studio development as part of their support for the wider creative industry.
“Film and TV production in the North East is up 131% over the last three years and we recently saw one of the most eagerly anticipated blockbusters, 28 Years Later, showcase not only some outstanding locations, but also some epic scenes created here in our alternative studio space. Not only did they shoot more than 80% of the film in the region, but they also were based here for over nine months.”
“We are now excited to be looking for the right investor for the next stage of our regions growth. The North East have never been in a better position to make the most of these exciting opportunities.”
Creative Industries are at the heart of Government’s priorities in its Industrial Strategy. It is one of eight key growth sectors identified in the Strategy, with a published Sector Plan demonstrating a commitment to investment, IP protection and enhanced R&D for the sector.
