Communities Minister Baroness Hanham formally announced almost £5.4 million of European investment, match funded by the Homes and Communities Agency (HCA) to build business facilities which will act as catalysts for further development on Enterprise Zones.

Lady Hanham confirmed that the European Regional Development Fund Competitiveness Programme 2007- 2013, which is managed by the Department for Communities and Local Government, is investing £3.29m in the HCA owned Darlington Business Growth Hub on the Central Park Enterprise Zone site where work will start later this year.

The Baroness also announced that the European Regional Development Fund is investing £2.1m in Boho 5, part of the DigitalCity initiative, and forming part of the wider regeneration of greater Middlehaven in Middlesbrough.

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Darlington Business Growth Hub will comprise 3,200m² of high quality Grade A office space for small and medium enterprises and is due to open January 2015. The project will see the creation of at least 25 new businesses and 350 new jobs within the first 15 years of operation.The project is being managed by Darlington Borough Council with the Homes and Communities Agency providing the match funding.

The Hub forms part of the wider regeneration of Central Park within the Tees Valley Enterprise Zone, a 9.3 hectare site targeted specifically at digital companies. The development of the facility will kick-start enterprise development on Central Park and form a visible gateway to the Enterprise Zone.

David Curtis, Executive Director at the Homes and Communities Agency (HCA) said: "The confirmation that these schemes will receive European Funding means that the HCA will invest an additional £5million in creating jobs in the Tees Valley.

"We will invest £3million in the Darlington Growth Hub to help create a purpose built facility that will help new businesses grow and supports local jobs. Our £2million investment in Boho 5 is a key part of our wider long term investment in Middlehaven to help create educational and employment opportunities for Middlesbrough."

Boho 5 is part of the Digital City programme of projects which is developing a 'super-cluster' of digital companies in the area. It will provide 2,322 sq m of high quality business accommodation targeted specifically at small and medium enterprises operating in digital and creative sectors.

(CD/MH)