Global commercial real estate advisor Avison Young has been appointed to market the sale of the former Union Electric Steel factory in Gateshead town centre. The facility is situated on a 4.03ha (10.2 acre) site, located at the corner of Park Lane and Felling Bypass to the east of the town centre, arrives to market following the steel business being placed into administration by its US owners.

Offering access to Gateshead Highway, the property is situated on one of the key traffic thoroughfares into Newcastle and the wider North East region, presents significant scope for redevelopment, and is situated near to a number of large-scale regeneration schemes.

The accommodation, totalling more than 26,700 Sq. M. (288,000 Sq. Ft.), comprises several substantial purpose-built industrial buildings arranged in nine bays, with multiple floor levels throughout, alongside office accommodation across two floors. The factory has been occupied for over 100 years under various ownerships and has been expanded over several decades.

Located in a prominent area of Gateshead identified within the Core Strategy and Urban Core Plan as a focus for growth, the site is not safeguarded for employment-only usage, and mixed-uses including residential development are supported, subjected to planning.

The site is well placed to benefit from the regeneration projects taking place in the wider Gateshead area, including proposals for the new arena and conference centre immediately to the north of the site.

Avison Young, on behalf of the administrators, is inviting offers for the freehold interest in the site, which is sold with full vacant possession. Interested parties may submit separate offers for the plant and machinery.

Mark McKelvey, Director at Avison Young, said:
“This is one of the most significant redevelopment opportunities to come forward in Gateshead in recent years. Its scale, connectivity and proximity to major regeneration projects give it the potential to deliver real long-term value for the town and the wider region.

“The site’s flexibility means it can support a range of potential uses, and we believe it could play a pivotal role in shaping the next phase of Gateshead’s growth. We are already seeing strong interest from a wide range of developers, and we anticipate high demand as the site moves through the marketing process.”

Enquiries from interested parties should be directed to the agents, Avison Young.

Mark McKelvey: [email protected] – 07825 762297
Danny Cramman: [email protected] – 07796 993750
Pippa Heron: [email protected] – 07769 137141