New £3.5m retail scheme for South Shields

Construction is underway on the brownfield site off Claypath Lane and the A194, delivered by Newcastle-based developer Modo Bloc.

Develop North, which is managed by Newcastle-based fund management specialist Tier One Capital, is providing £2.4m of the funding for the development.

Castle House Projects is the main contractor and is building four roadside retails units, to include a drive-through Starbucks, Greggs, Indigo Sun, and eight EV charging stations.

Work is expected to complete in nine months, and marks another commercial venture for the North East-based investor.

Since its inception in 2017, Develop North has deployed almost £100m in capital to support more than 40 projects across the North East of England and Scotland.

George Jenkins, managing director at Modo Bloc, said: “We’re pleased to bring a neglected site back into productive use and to support the regeneration of this part of South Tyneside with a high-quality roadside retail offer.

“Developments like this provide long-term economic and consumer value by creating jobs, enhancing local amenities, and encouraging further investment in the area.

“This scheme shows what can be achieved with a strong local development team and the right funding partner.”

Brendan O’Grady, fund manager at Tier One, the investment adviser to Develop North, said: “It’s exactly the kind of project we aim to support, one that regenerates brownfield land, creates jobs, and delivers long-term economic benefit.

“Our role is to provide the financial support that allows credible developers like Modo Bloc to move quickly and confidently through the development process.”