Pragmatic Semiconductors' plan to redevelop the former Wavin Pipes site at Meadowfield Industrial Estate in Durham into a large manufacturing facility has scooped a CoStar Impact Award for 2023 for best lease of the year in the North East.
The Cambridge-based chip producer agreed a 15-year lease at the Northumberland Estates-owned property in April 2022 and will develop a 175,000-square-foot factory at the scheme, allowing the firm to ramp up its production to tens of billions of chips each year.
According to the company, which has been backed by a subsidiary of the government's economic development bank, Pragmatic Park will become the "nucleus of a worldwide network" of fabrication lines. Its chips are used in products across a number of sectors, including toys and games and pharmaceutical.
The judges appreciated the challenges of developing on the site when it may have been easier to pick already established research and development locations.
About the project: The former pipe works building sits on a 635,000-square-foot brownfield site. The new factory will house at least four fabrication lines and will be crucial to producing its electrical circuits, which are thinner than a human hair.
Pragmatic secured an additional $35 million (£28 million) of investment in December to accelerate its plans to develop the large factory, bringing its Series C funding round to $125 million in total. The funding has been secured from "high-quality institutional investors" and represented a huge vote of confidence for its industry amid tough economic conditions.
What the judges said: David Gibbs, commercial director at UK Land Estates said: "The size and nature of the occupier looking at the specific location is hugely impressive.
"No doubt the occupier could have looked at design and build sites around the region, but selected a location that needed extensive refurbishment and development. It will also generate highly skilled jobs for the local community and economy."
Guy Currey, Invest North East director, added: "Early stage business engaged in a critically important sector for UK plc (innovative semi conductor development and manufacture) investing significant amount in the North East after a successful funding round.
"They have leased a significantly sized industrial property which will be extensively renovated to develop a state of the art manufacturing facility."
They made it happen: Keith Stewart, industrial agency partner at Naylors Gavin Black, Duncan Christie, senior chartered surveyor at Naylors Gavin Black, Chris Donabie, investment partner at Naylors Gavin Black and Nick Atkinson, partner at HTA Real Estate.
