Ambitious plans to transform Gateshead's Baltic Quarter have moved a step closer, following the signing of a Pre-Development Agreement with Muse Places, supported by supply chain partners ECF.

The initiative aims to create a vibrant new neighbourhood featuring around 1,600 homes alongside offices, shops, restaurants, leisure facilities, and community spaces.

ECF—a partnership between Homes England and L&G—will now work with Gateshead Council to shape the future of the area, including funding and phased delivery. The development forms a central part of the Council’s regeneration strategy launched in September 2025, building on the Baltic Quarter’s existing community, which includes the Gateshead College campus, the Northern Design Centre, and a growing cluster of businesses.

The plans will introduce new public spaces, landscaping, routes, and infrastructure while supporting both existing businesses and the attraction of new talent to Gateshead and Newcastle. Recent improvements, such as a 1,000-space car park with potential for hundreds of electric vehicle charging points and the District Energy Network, underline the area’s sustainability credentials.

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Sir Michael Lyons, Chair of ECF, said: "The Baltic Quarter already has a vibrant community and we look forward to working with Gateshead Council to bring their wider vision for the area to life. Following the signing of the Pre-Development Agreement, we will now work with the council and other stakeholders to shape the plans to support the delivery of this exciting opportunity. Gateshead Council’s wider regeneration vision is a perfect example of how UK towns and cities can use their industrial heritage to support not just today's plans but tomorrow's ambitions, and the generations to come."

Councillor Martin Gannon, Leader of Gateshead Council, added: "Gateshead has always been a place of strength, pride and ambition – a place that gets things done, and can deliver regeneration as we did with the Glasshouse (Sage Gateshead) and BALTIC 25 years ago. This new agreement, working with a respected industry partner like Muse and ECF is testament to that and demonstrates our proactive approach to regenerating our neighbourhoods for the future.

"The Baltic Quarter is a key project for the Council and one we believe can have a transformational impact on the whole of the borough. The site offers the potential to deliver over 1,600 new homes, both affordable and for market sale, new office space for businesses, as well as high-quality public spaces and improved links with nearby neighbourhoods, our town centre and the Quays. We believe it will be a fantastic shop window for Gateshead, attracting potential future investors."

ECF combines Homes England's drive to deliver affordable housing, L&G’s real estate and infrastructure expertise, and Muse’s urban regeneration experience. Together, the partnership has a strong record of delivering complex, award-winning regeneration projects across the UK.

Jonathan Parker, Development Director at Pagabo, said: "This appointment demonstrates how a robust and transparent procurement process can support ambitious regeneration outcomes. By using The Developer Led Framework, Gateshead Council was able to move at pace while maintaining flexibility, certainty and compliance, ensuring the right development partner was selected to help realise the long-term vision for the Baltic Quarter."