Legal & General has announced that is has committed £100m to back Sunderland City Council’s extensive masterplan for the regeneration of the former Vaux Brewery site. Proposed as a new core business district, Legal & General’s investment, which forms part of the wider ‘Riverside Sunderland’ project, is supporting the creation of up to 3,000 new jobs.
Sunderland is home to over 5,500 businesses, including 80 internationally owned corporations, employing more than 100,000 people. Despite this, there has been a lack of development of Grade A office space and good quality stock within the city centre has been limited. Sunderland, therefore, is a key target for Legal & General as it looks to support the transformation of a city which has seen significant underinvestment for the past twenty years.
Legal & General is uniquely placed to invest pension money into the UK economy. Across the UK, it has invested over £22bn into direct investments such as urban regeneration, clean energy and transport infrastructure. This can help support its long-term commitments whilst driving extraordinary social outcomes by creating real jobs, high quality and varied housing and better infrastructure. This, in turn, boosts productivity and delivers vibrant communities in which people can live longer, healthier and happier lives.
Meeting Sunderland’s increasing need for modern office facilities, the £100m investment from Legal & General seeks to deliver three new commercial buildings, comprising up to 300,000 sq ft of Grade A office space including the new Sunderland City Hall. Legal & General’s investment should act as a catalyst for wider regeneration, driving regional economic growth and job creation within Sunderland.
Nigel Wilson, CEO of Legal & General, said: “Sunderland City Council has drawn up a visionary plan for Sunderland; a City ripe for economic growth, having historically lagged behind its Northern neighbours. As seen with our other Future Cities investments in areas such as Oxford, Leeds, Bristol, Newcastle and Cardiff, a long term patient capital injection can completely transform towns and cities. This can have a direct social impact, creating real jobs and supporting real wage increases, whilst creating a virtuous circle by generating income to pay pensioners. This is Inclusive Capitalism at its best. We hope our investment today will accelerate regeneration plans for Sunderland, attracting further capital to support the vast potential of this city.”
Patrick Melia, Chief Executive of Sunderland City Council, said: “Today’s announcement is the single most significant investment story to come out of Sunderland for decades. We are absolutely delighted that the vision we have created for this city is attracting the enthusiasm, support and most importantly the financial backing of Legal & General, one of the world’s most significant investors. Sunderland has been something of a sleeping giant, but it has awoken, and we’re absolutely determined to ensure this city realises every bit of its vast potential.”
