Sunniside takes major step forward with new partnership

Sunderland City Council has taken a major step forward in its plans to revitalise Sunniside, following the signing of a Pre-Development Agreement with Muse, supported by supply chain partners through the ECF partnership.

The agreement builds on the Council's Sunniside Place Strategy, launched in 2024, and the progress already made in the area, including the Nile + Villiers housing development and the National Esports Performance Campus, both of which have been spearheaded by the Council.

The Pre-Development Agreement has been made possible through the Developer-Led Framework, which Pagabo manages on behalf of Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust.

ECF is a partnership between Homes England, L&G and Muse, bringing together public and private sector expertise to support long-term regeneration in towns and cities across the UK.

Through the ECF partnership, Sunderland City Council and its partners will work together to shape the next phase of plans for Sunniside.

This will include exploring funding and delivery strategies to support proposals for this key part of the city centre, which forms part of the Riverside Sunderland Creative Mayoral Development Zone.

Widely recognised for its heritage buildings, independent businesses and creative community, Sunniside presents a significant opportunity to bring more people, activity and investment into Sunderland city centre. The partnership will support the Council's ambitions for the area, providing a clearer route towards delivery.

The next phase of work will see a design team appointed by the partners to develop a comprehensive masterplan for Sunniside, supported by planning and technical specialists. This work will include identifying priority sites that can help build early momentum for the partnership.

Early indications suggest there is potential to deliver more than 1,000 homes across Sunniside, helping to create a vibrant, mixed-use neighbourhood with workspace, shops and community spaces. A key principle of the work will be integrating existing heritage assets and independent businesses into future plans, building on the area's established strengths.

Councillor James Jackson, Cabinet Member for Business Housing and Regeneration at Sunderland City Council, said: "Sunniside has enormous potential and a critical role to play in the story of Sunderland. It is one of the most distinctive and culturally rich parts of our city centre and following the launch of the Place Strategy in 2024, we want to focus on addressing the challenges that have held the area back.

"This partnership represents a significant step forward. By working with experienced partners like Muse and ECF, we can accelerate delivery of our place strategy to support the city's economic prosperity by building new homes, strengthening local businesses and creating an exciting and creative neighbourhood that people want to be a part of."

Sir Michael Lyons, Chair of ECF, added: "Sunniside's potential has long been recognised by the Council and the local community, and this next stage will be key to unlocking it. We are excited to help unlock the next chapter for a neighbourhood with a strong history of enterprise and creativity, as the city's original business centre.

"Sunderland City Council has already played a leading role in driving change, acting as a catalyst for regeneration. Following the signing of the Pre-Development Agreement, we will now work closely with the Council, North East Mayoral Strategic Authority and other partners to develop a comprehensive masterplan and establish the right approach to support the next phase."

Henry Kippin, Chief Executive Officer of the North East Mayoral Strategic Authority, said: "Sunderland is already a national success story when it comes to urban regeneration, and the historic Sunniside district will play a key role in the next chapter, as we bring new homes, jobs and opportunities into the heart of the city through the Riverside Sunderland Creative Mayoral Development Zone.

"This is about backing the incredible creative talent we have in the North East, creating the spaces, opportunities and confidence for people to build their careers locally, and for our creative businesses to grow. With the MDZ  set to boost the creative sector and unlock the next phase of Riverside Sunderland, including projects like the first phase of the Crown Works film studios, this is a real chance to help talent thrive and stayin our region."

Feasibility work is expected to continue throughout 2026. Subject to outcomes, the Council and its partners will then look to move towards a full Development Agreement, enabling detailed funding and delivery proposals to come forward for key sites.

Jonathan Parker, Development Director at Pagabo, said: "This appointment demonstrates how the Developer-Led Framework can support complex regeneration projects, enabling Sunderland City Council and its partners to move forward with confidence and pace."