Terrace Hill Group plc ("Terrace Hill"), a leading UK property development and investment company, has been granted planning permission by Gateshead Council for the Design Centre for the North at its 50 acre scheme, Baltic Business Quarter, in Gateshead.

The Design Centre is a public/private partnership between Terrace Hill and One North East intended to create a design 'hub', a place in which to develop world class concepts, collaborations and initiatives that will raise the profile of and foster further success in an industry which has already brought economic benefits to the region.

One half of the 45,000 sq ft, four-storey building will be devoted to the hub which will be led by Sunderland-based RTC North, a technology transfer and commercialisation consultancy, in partnership with the Universities of Newcastle, Teesside and Northumbria.

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The remaining space, approximately 20,000 sq ft, has been allocated as flexible commercial office accommodation for the region’s design companies. Letting agents for The Design Centre, which was designed by architects Red Box Design Group, are DTZ and Sanderson Weatherall. It is anticipated that work will start on site later this year, with the building taking approximately 15 months to complete.

The Design Centre for the North is the latest addition to the area's creative credentials as Baltic Business Quarter sits behind the Baltic Centre for Contemporary Art and the Sage in Gateshead. The design sector currently accounts for around two per cent, or £600 million, of the region’s economic output.

Baltic Business Quarter, a 10-year project that commenced in 2004, continues to grow, with proposals for the recently announced hotel, nursery and coffee shop element being considered and the arrival in autumn 2008 of the Open University at its new 19,500 sq ft buildings, which sit next to the Design Centre's site.

Martin Vickerman, Director at Terrace Hill, commented: "Baltic is a fantastic project and the arrival of the Design Centre, supported by no less than three local universities, to our scheme greatly complements its neighbouring occupants the Gateshead College and Open University.

"We are confident that this new centre will provide both a stimulus for future investment in the design industry in the North East, together with a focal point for inspiring and promoting innovative and productive design companies in the region."

(JM/NS)