Develop North backs first phase of 440-home Kelly’s Wharf regeneration

A £1.95m funding package will kick-start the scheme in Hebburn, unlocking construction of the first homes on the former Hawthorn Leslie Shipyard site.

The 18-month funding facility has been agreed with Hebburn Riverside Development and will finance the delivery of the first nine executive family homes on the landmark riverside brownfield site.

Kelly’s Wharf forms part of a wider regeneration masterplan that has outline planning consent for more than 440 homes, alongside commercial space, landscaping, and public realm improvements.

North East contractor Oakley Homes has been appointed to build the first phase, comprising three-storey, four-bedroom homes overlooking the River Tyne.

The properties will include air source heat pumps, solar photovoltaic panels, electric vehicle charging points and riverside gardens extending to the water’s edge.

Future phases of the development are planned to include a day nursery, neighbourhood shop, café, cycle shop, and the restoration of the site’s historic jetty, alongside new public open space and landscaping.

The development will transform the historic Hawthorn Leslie Shipyard, one of Tyneside’s best-known industrial sites, while retaining references to its maritime heritage.

The masterplan includes measures to celebrate vessels built at the yard, including the Second World War destroyer HMS Kelly and the passenger ship SS Tilawa.

Construction of the first nine homes is now under way, marking the first stage in the long-term regeneration of the riverside site.

Michelle Percy, chief executive of Develop North, said: “Kelly’s Wharf is exactly the type of development Develop North exists to support. It combines the regeneration of an important brownfield site with the delivery of high-quality new homes, investment into the regional economy and the creation of a lasting legacy for the local community.

“Backing experienced regional developers with a proven track record of delivering complex regeneration projects is central to our investment strategy. By providing flexible development finance, we can help unlock schemes that regenerate challenging sites, accelerate housing delivery and create long-term economic value across the North.

“This investment is about far more than funding the construction of the first nine homes. It is enabling the wider transformation of one of the North East’s most significant historic riverside sites while supporting local businesses, regional expertise and the creation of a vibrant new community.”

Mark Russell, co-director of Hebburn Riverside Development, said: “We’ve spent several years bringing Kelly’s Wharf to this point and seeing construction underway is an incredibly proud moment for everyone involved.

“While this first phase delivers nine exceptional riverside homes, its significance goes much further. These homes establish the gateway to Kelly’s Wharf and unlock the future delivery of the wider regeneration.

“Our ambition has always been to create a landscape-led riverside community that respects the extraordinary history of the site while delivering the high-quality homes South Tyneside needs. For many local families this site holds generations of memories, so it’s immensely rewarding to see it beginning a new chapter.”