“It’s about identity. I think we’ve not had an identity for a long, long time. We’ve allowed ourselves to be defined rather than define who we are. We are at a point in time when we can define ourselves.”
A big statement from a big voice. That was Nick Kemp, leader of Newcastle City Council, speaking at EG’s Cities Lunch, held at the 21 Newcastle restaurant. With a new North East Mayoral Combined Authority set to be established and a devolution deal in the works, talk at the table centred on the opportunity for the city and the wider region to reassert itself on the national stage.
“I think the combined authority has demonstrated the level of maturity that had not been present,” Kemp said.
“My role as a city leader is to convene. I think that every strategy developed under my leadership has been one of collaboration.”
Game changer
Kemp was joined by other figures from the public sector, as well as the regional real estate industry, to explore the opportunities ahead and what many see as the unique position Newcastle now finds itself in.
“I genuinely believe [the combined authority and devolution] is a game changer for the North East,” said Sheena Ramsey, chief executive of Gateshead Council. “It feels a bit like we’ve grown up and gone to secondary school.
“We’re really starting to look at how cohesively we can embrace the opportunities that are here. That’s phenomenally exciting. I’ve never seen the working relationships better, so it couldn’t be a better time for it.”
For Michelle Percy, director of place at Newcastle City Council, it’s a case of “taking ownership back”.
“The leadership belongs in this city, in the region,” she said. “That is absolutely transformational. Giving that devolved authority back to the people who know their space is absolutely a huge deal.
“We’ve got the great universities. We’ve got the really good sectoral strengths. We’re about to refresh our iconic bridge that ties Newcastle and Gateshead together in a much stronger way, and we can make much more of that for the development of our case. We’ve got lots of great opportunities to work with partners and use the devolved authority position in a different way for us.”
Scaling up
James Pitt, managing director for Yorkshire and the North East at developer Muse, knows well the regeneration boost that can come with such a political change.
“I couldn’t emphasise enough, from what we’ve seen in West Yorkshire and also across the Pennines and Greater Manchester, the power that devolved authority has in driving regeneration,” Pitt said. “It’s able to focus on the issues that really matter to local people. It’s able to drive investment, resource, capital and people, to where it’s needed. That will be the biggest single change for this region going forward.”
And with focus, comes scale, the Muse director added.
“Scale is really important,” Pitt said. “It’s not only important for us, it’s important for investors, certainly sovereign wealth investors and non-UK based investors. They won’t touch anything that’s under £100m. What I can see [now] is scale.”
Jane Robinson, pro-vice-chancellor for engagement and place at Newcastle University, agreed, adding that closer ties between public and private sector will only enhance the achievements.
“What we’re seeing in the city and the wider region is bringing together the public sector, the private sector, and universities and colleges,” she said.
“What it also means is when we’re thinking about all these opportunities, we’re thinking about them not just from a point of view of this or that physical development, but what it means for the place, for the city, for the region, and most importantly for the people.
“How do we deliver something that gives these great environments, makes the most of all those natural and cultural assets that we have, and benefits local people?”
Changes in store
The city is already changing, of course. Michael Henning, director at Todd Milburn, has worked in Newcastle for his entire career and has never seen activity like now.
“From our office in the city centre, we’re watching these developments come up – Ryder’s Bank House and all of the developments coming in there. The employment opportunities, the difference it’s going to make to the city centre, and then how that can spread outwards to the communities, in the east and west of the city as well. It just feels like everything is coming together at the right time.”
Even the most-established names see it. The famous Fenwick department store just celebrated its 140th anniversary.
Store development director Hugo Fenwick said: “We’re excited by this huge amount of inward investment into the city in the last decade or so, and particularly the further catalyst with the acquisition of the football club [by the Saudi Public Investment Fund, PCP Capital Partners and the Reuben Brothers] and the inward investment from the Reuben brothers.
“We’re pleased with how that has led to ourselves investing heavily in our store to take it up to a luxury store and to further placemake alongside it. We’re thrilled to be a part of an opportunity to further develop the city centre.”
It all adds up to a busy time for the city’s agents and a swelling workforce.
From stuck to moving
Greg Davison, a director at Savills who works in the mixed-use development team as well as overseeing office leasing and tenant rep, said: “I’ve been working in the city now for 20 years, and there’s a transformation in terms of the type of occupier we’re getting – the likes of [defence company] Leonardo, who chose Newcastle over other parts of the country, like Manchester.
“In the early discussions we were having with them, it was all about recruitment. One of the key things that I’ve seen in the city is the changing ability to retain graduates who have come to the region because they want to come here to study, have loved it and decided that they want to stay. We’re now at a point with changes in working practices that not everybody feels that they have to immediately work down in London. We’re now seeing people that want to stay here, and the jobs are starting to appeal.”
Pete Atkinson, head of investment at Savills, grew up in Newcastle, moved away and has since returned.
“It was always a bit of a frustration for me to see Newcastle stuck,” he said. “And when I say stuck I mean it’s a tight city, a beautiful, historic city with only so many limited development sites. There was some frustration that it’s not really selling itself. We fast forward to where we are now and we have got that momentum. We’ve had four new office buildings delivered in the city in the last couple of years, and record rents.”
For Jonathan Seebacher, partner at Ryder Architecture, it comes back to the tight-knit real estate community in the city. EG had commented early in the roundtable that the guests all seemed to be well connected, and Seebacher said it was true of players across the region.
“I say that from a point of view of working nationally and internationally. You saw us come in and we’re all friends – we all know each other and work together,” he said. “There’s a willingness for everyone to see everyone else do well. There’s a healthy competition, but we want to see Savills do well, Savills want to see us do well, we want to support the city, and the city wants to support us.
“Everyone says they collaborate. It’s the flavour of the month – it’s a word that you read all the time. But I see it here, more so than in any other region.”
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