News Article

NEWCASTLE’S ambition to become a leading Science City took a major step forward today with the £33 million acquisition of the former Scottish & Newcastle brewery site.
 
The home of the world-famous Brown Ale will now form the hub of a world-beating Science City development which will put Newcastle and the wider region on the international stage for science and technology based business.
 
The deal means 14.4 acres of the site have now passed from Scottish & Newcastle Breweries to Newcastle City Council, One North East and Newcastle University who have pledged to use Science City status to enhance the region’s growing reputation for pioneering scientific research and as a key location for knowledge based business.
 
It is hoped that up to 15,000 jobs could be created over the next 10 years as researchers and companies come together to exploit commercial opportunities in applied science such as stem cells, ageing, health, energy and molecular engineering.
 
Paul Walker, Chief Executive of The Sage Group plc, is chairman of Newcastle Science City Partnership that will oversee the development of Science City.
 
Mr Walker said: "This is a truly exciting step for the Science City initiative. Investment in science and innovation is vital for the region’s long term growth and prosperity. This first step proves we are serious in our goal to make Newcastle a world class centre for science."
 
The former Scottish & Newcastle site – 22 acres in total – is one of the biggest city centre regeneration sites in the UK.

The City Council is the largest owner having acquired 5.2 acres of the site earlier this year in a £10 million deal funded by Bridging Newcastle Gateshead Pathfinder. A private developer owns the remaining 2.4 acres of the site.
 
Coun John Shipley, a member of the Science City Partnership, said: "Newcastle Brown Ale has been a fantastic brand name helping to make the city famous all over the world.
 
"With Science City we hope to create an even stronger brand that will bring high quality jobs and lasting prosperity to Newcastle and the city region for the next 100 years.
 
"I am delighted that we now own this site and I am confident that with our partners and the private sector we can harness the growing confidence in Newcastle to create a mixed use development that will enhance the city’s reputation across the world."

The cost of the site has been met equally between the three key partners who each own a third of the 14.4 acres.
 
Margaret Fay, chairman of One North East, said: "The brewery site is a once-in-a-lifetime development opportunity for a once-in-a-lifetime project that will reinforce the North East’s standing internationally as a major force in science and technology.

"We hope that the physical development of Science Central on the brewery site will link to the other well established institutes of Durham University, Netpark, NaREC in Blyth and Teesside Universities’ Digital City to ensure that the learning research and business creation that results from Science City benefits the entire region."
 
Newcastle University plans to establish world-class research teams on the brewery site to work with companies and other partner organisations such as the NHS. The researchers would specialise in nanotechnology, bioscience and molecular engineering which will be the boom industries of the future.
 
The University’s Vice Chancellor, Professor Christopher Edwards, said: "Very rarely does a development site of this size become available in a city centre and I am delighted that we have seized the opportunity to acquire it.

"We are now in a position to put science at the heart of our city. We aim to lead the way in regional development by demonstrating that scientists, the business community and the public sector can work together and make a major contribution to our regional economy.

"Our vision is that in the twenty first century, new industries based on developments in nanotechnology, bioscience and molecular engineering will become as powerful as coal and shipbuilding were in the nineteenth century."
 
Negotiations to begin acquiring the brewery site started over a year ago after Scottish & Newcastle Breweries announced it was relocating to the Federation Brewery site in Dunston, Gateshead.
 
Although contracts have been formally exchanged Scottish & Newcastle Breweries are currently decommissioning the site and will not officially vacate until June 2006.

Chris Jowsey, Managing Director of Newcastle Federation Breweries, said: "We are very pleased that our former brewery site will be put to such good use for the city of Newcastle and, indeed, the North East.

"Science City will bring a new lease of life to the area, and attract the businesses and investment that will form the industries of the future."

The next step in the development of Science City will be a masterplan commissioned by the partners that will be completed in 2006.
 
After acquiring part of the site in March this year the City Council jointly commissioned regeneration consultants Beyond Green who began a detailed consultation with stakeholders and residents on the future of the whole of the brewery site.
 
Notes to editors
The Science City plans are a joint response to the Government’s announcement last year to create six science cities by giving more support for science and technology facilities. They demonstrate plans to accelerate scientific activity in order to grow sustainable companies and jobs.

 As a result, it is estimated that up to 100 new technology-based companies could be created or attracted to the region by 2010.

The centrepiece of the project is 100,000sq metres of new buildings with the working title Science Central, accommodating new world-class scientific research, teaching and business facilities.
 
It would also involve the creation of four new multi-disciplinary research initiatives in target areas of science and technology and introducing new approaches to enable scientists to work closer with business, and have a novel approach to teaching science in schools.
 
A report outlining the Science City vision and its economic benefits has been submitted to the Treasury seeking Government support.

The £33 million acquisition costs include demolition and other works to prepare the site for development.
 
Please note that a photograph accompanies this press release.
Caption:
left to right: Coun John Shipley, Prof Christopher Edwards, Paul Walker and Margaret Fay on the former Scottish & Newcastle brewery site.

For more information please contact:
Andrew McKegney, Newcastle City Council, tel: 0191 2115099
Abi Kelly, One North East, tel: 0191 2296308
Mick Warwicker, Newcastle University, tel: 0191 2225893
Nigel Pollard, S&N UK, tel: 07785 531756