Many new developments are springing up across the UK with the aim of creating employment and boosting local economies in a bid to combat the effects of several years of recession. The Government has attempted to aid this process by offering regional growth funds, cutting business rates in designated Enterprise Zones and making improvements to the infrastructure.
Now, the DigitalCity project at St Hilda’s Enterprise Zone in Teeside has announced that it will benefit from a £2.1 million cash injection provided by the European Regional Development Fund. This brings the total investment in the regeneration site to £10.4 million, with other key benefactors being the Homes and Communities Agency and Middlesbrough Council.
The money will be used to develop and make improvements to the Boho 5 aspect of the DigitalCity project, allowing digital and creative SMEs to flourish in 2,322 square metres of prime office space. In Boho 5 alone, it is expected that 250 jobs will be created in the next decade.
However, Boho 5 is just a small part of the overall project, as the Central Park Enterprise Zone will provide an additional 3,200 square metres of office accommodation, create 350 jobs over 15 years and will, furthermore, assist in the establishment of 25 new businesses.
Communities Minister Baroness Hanham revealed the news of the investment during a visit to the DigitalCity site last week.
She said; “The funding will see the development of high-quality premises that will create jobs and wealth.
“Boho 5 is an opportunity to showcase what can be done – this part of the world is going to be known for its digital and creative excellence.”
Already, the DigitalCity project has begun to take root in the digital and creative industries, housing several firms which specialise in technical developments. Many of these businesses have found international success; including 360fusion, which has just been awarded a contract to create a virtual tour of Dubai’s Deira International School.
Construction work for the Boho 5 scheme is set to begin later this year, with a forecast completion date of early 2015. At that point, the first firms can move in and further build upon the site’s already successful profile.
According to DigitalCity Business, the commercial arm of the development, Boho 5 will act as the ideal tester platform for businesses looking to expand.
Chief executive Mark Elliott says; “It will allow businesses to develop the commercial potential of their ideas.
“We’ve created a very focused business growth system based on practice, not on theory.
“What we want to do is create a super cluster.”
With rapidly expanding Enterprise Zones springing up across the country, many of which seek to invest in the future of start-ups, there is every chance that the economy will be strengthened thanks to successful SMEs.
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