Final phase begins at former Dewhirst site

A regeneration project in Sunderland has entered its final stage with construction now underway on two new retail units.

The development will see drive-thru stores for Greggs and Starbucks built at the former Dewhirst factory site on Pennywell Industrial Estate. 

UK Land Estates, which owns the seven-acre site, is leading the project, with STP Construction appointed as the main contractor.

Marking the final stage of regeneration, the scheme follows the successful arrival of Aldi, Wickes and KFC.

Once complete, UK Land Estates’ total investment in the location will exceed £10 million.

Tim Witty, development director at UK Land Estates, said: “It’s fantastic to see preparatory works get underway on this final phase of development.

“UK Land Estates has a track record of regenerating brownfield sites across the region, and this is a fine example of how we are continuing to do just that.

“Having stood empty for the best part of 20 years, the site is now revitalised, providing new retail facilities in the city while also creating jobs for local people.”

The historic Dewhirst site was once home to one of Sunderland’s largest clothing manufacturers, employing hundreds of local residents before closing in the early 2000s.

After years of vacancy, UK Land Estates secured planning permission in 2022 to redevelop the land into a vibrant new commercial destination.

The Pennywell investment forms part of the company’s wider £35 million programme to deliver more than 270,000sq ft of new industrial and retail space across the North East this financial year.

Tim added: “The North East has a huge dearth of available, high-quality industrial and warehousing space, and we have witnessed this first-hand.

“Over recent years, we’ve delivered several major industrial schemes, the majority of which have been snapped up prior to completion.

“And with this, there is naturally also a demand for more retail units, like those we’re bringing forward here at Pennywell.

“That is why we are continuing to invest in the region, with over £35 million being spent on bringing to market a flurry of new developments and refurbishing existing stock, and it doesn’t stop there.

“Should the right opportunities present themselves, we are willing and able to develop even more sites, so long as the conditions are right, so hopefully there is even more to come.”

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