Northhold steps in at troubled Milburngate
The Manchester property group has acquired the mixed-use Durham development, declaring its intention to bring the scheme to completion.
Originally brought forward by a joint venture between Arlington Real Estate and Richardson, aiming for completion in 2022, work stalled when contractor Tolent went into administration in 2023.
What followed was something of a stand-off over safety requirements and which party should take responsibility to take the scheme to practical completion.
By 2025, with no further progress made, Durham County Council had planned to step in and see the project through, only for a change of administration to send the process back to square one, with the local authority not going though with the purchase.
DCC is however, pleased to see progress. Leader Cllr Andrew Husband said: “We welcome the news of the sale of the Milburngate development to a new developer, particularly given that they have already set out their intention to bring the site to completion and ensure it is able to fulfil its potential in this prime location at the heart of Durham City.
“We look forward to the development being completed as soon as possible and contributing to our exciting plans for the wider Durham Innovation District in the city centre.”
Announcing its purchase on Linkedin, Northhold said that has acquired the scheme overlooking the River Wear, describing it as a six-acre mixed-use entertainment, workspace and residential development.
The firm said: “We are excited to move forward and bring this landmark development to completion.
“Milburngate represents a significant opportunity for Durham, and we look forward to working collaboratively with all stakeholders, including Durham County Council, to deliver a vibrant and successful destination for the city.”
The Northhold Group includes ABGI Construction, and works across the UK, with much of its work being in commercial redevelopments.
The tenant line-up remains uncertain. Everyman has been inked in to open one of its F&B-led cinemas at the scheme, while teaser signage for BrewDog was put in place several years ago – however, that business has now closed all but seven of its English bars (five in London, and one each in Manchester and Birmingham) following its pre-pack administration. Place has asked Everyman for comment.
Northhold continued: “Work to complete the highly anticipated project is expected to start in the next few months. It includes a new boutique cinema, a collection of high-end restaurants and bars and a hotel.
“Beyond entertainment and hospitality, the development addresses Durham’s growing demand for quality urban living and workspace. The development includes office space and 153 built-to-rent apartments, positioning the city centre as an attractive location for both working professionals and residents seeking contemporary city living.”
Development director at Northhold, Shahram Sakhfari, is leading on enquiries for the scheme.
JMW Solicitors advised the buyer on the deal, along with PK3.
