ADVERTORIAL FEATURE
Teesworks
– from the start
BUILDING THE VISION
Overview Once the site was cleared , development work could commence , with Teesworks Limited actively beginning to market the site and securing occupiers in 2022 .
Here we summarise the ongoing activity and processes to secure investment , construction and jobs onsite .
Marketing the site With all structures cleared , land became available and was marketed to key employment sectors .
General marketing activity includes media liaison , trade shows , website and marketing asset creation . Teesworks Limited has progressed detailed discussions and agreed terms with more than 10 major companies to develop onsite . This will see thousands of jobs created and billions of pounds invested in the site and local economy .
All agreements and discussions with occupiers take place under nondisclosure agreements ( NDAs ), as many potential occupiers have sensitivities around development projects . Public announcements are therefore made at the appropriate time , to fit the tenants ’ timeline .
Key sectors The key industrial sectors developing on the Teesworks site are offshore wind , net zero technologies , hydrogen production and storage , sustainable fuels and energy recovery and battery storage . Development is also being planned for logistics , warehousing and SME accommodation .
Agreeing terms with occupiers Following site visits and detailed discussions , a site area is agreed and Teesworks Limited reaches agreement on heads of terms with potential tenants , detailing key information required to form the basis of the legal agreements . This includes land area , price , incentives , timings , conditionality , liabilities and other commercial terms . On reaching agreement on heads of terms , legal representatives are then instructed .
This can be a lengthy process given the detail , scale and complexity of development projects onsite .
Occupier requirements The Teesworks Limited team has focused on securing several large-scale , nationally significant infrastructure projects (“ anchor tenants ”), which create strong markets for supply chains and SMEs – providing a foundation for local companies to support .
Each large project requires a huge amount of design and planning and can take well over 12 months before there is any activity onsite . On the major projects , large organisations are investing tens , if not hundreds of millions of pounds prior to site construction beginning .
In several cases this is why “ option agreements ” are signed , as land must be secured from the outset to enable vast sums to be spent to advance projects before leases are completed and construction can commence . Matters for consideration include : - Government contract procurement to secure work . - Planning permissions to be secured - in several cases this will involve a twoyear development consent order ( DCO ) process .
- Detailed design and development , securing all appropriate permits and legislative requirements .
- Land remediation to prepare for construction .
Legal agreements Teesworks Limited has appointed leading commercial property lawyers to conclude complex contracts with tenants .
A multitude of agreements are required , including leases , options , collateral warranties , works agreements , commercial services and easements , all of which require commercial negotiation and detailed drafting .
Appropriate conditions such as timings , delivery obligations and key project milestones are agreed and reflected within the legal agreements ( see the example under “ Occupier requirements ”). This process takes six-to-12 months depending on the size of the transaction .
Each transaction takes considerable resource from Teesworks Limited and external consultants . For example , when transacting with SeAH , several Teesworks Limited personnel spent weeks on calls throughout the night due to the time difference with SeAH ’ s parent company in South Korea , in order to conclude agreements .
Services and infrastructure Teesworks Limited technical teams work through all tenant requirements with design teams to form the scope of works required for development onsite . This includes all utility requirements ( such as amount of power , use of rail and roadway infrastructure ). Works are then completed in line with timeframes agreed in the legal documentation .
Remediation works specifications are also agreed in line with the tenants ’ construction programme .
Any easement routes for companies to lay service infrastructure across the 2,500- acre estate are also agreed , ensuring no clashes with future development projects or existing infrastructure .
2022
28 | Tees Business