Financial backers of Sunderland's Crown Works studios pull out
New investment is being sought for a flagship film studio plan in the North East – after its initial backers pulled out.
New investment is being sought for a flagship film studio plan in the North East – after its initial backers pulled out.
It has been hoped that the Crown Works Studios in Sunderland would create thousands of jobs and bring blockbuster film and TV production to the region.
But Sunderland City Council and the North East Combined Authority are now looking for fresh investment to ensure the studios can be built on the banks of the River Wear, after financiers Cain International withdrew.
Local leaders say they “remain confident” in the scheme’s future and that they expect to have new funding in place before the end of this year.
The vision for the vast £450m complex was originally led by FulwellCain, a joint venture between global entertainment company Fulwell 73 and Cain International, who had hoped to build 19 sound stages at the riverside site.
Sunderland City Council said on Monday that Fulwell Entertainment “remains a committed champion of the scheme”, but that the proposals were now “being presented to the investment market, with the aim to put in place a final funder and developer later this year”.
Council leader Michael Mordey said: “These studios represent a game-changing opportunity for the city and we cannot wait to see them progress. There’s an absolute commitment to secure the best possible delivery partner to move this forward and we expect that we will have funding confirmed and be ready to progress the first phase of the studios by the time remediation works complete later this year.”
Preparatory works on land next to the Northern Spire Bridge are already under way, paid for through public money, but building work on the studios has yet to begin.
Planning permission for the development was secured last year, but detailed approval has only been granted for a first phase of building that would include four sound stages, production offices, workshop buildings, and a multi-storey car park.
The Government has provided an initial £25m cash injection, via the devolution deal which established the North East mayor, while Sunderland City Council and the North East mayoral authority have committed to ultimately invest up to £120m.
A specialist agent is being appointed by the council to engage with investors, which the authority said would still include the likes of Fulwell Entertainment – who were behind the Sunderland ‘Til I Die Netflix series.
North East mayor Kim McGuinness added: “We’re supporting Sunderland City Council in the job of preparing the site, which can eventually be the largest film and TV production complex in the UK outside of London and the South East.
“In the process we’ll create thousands of new jobs for local people and end the days where people have to leave the North East to pursue a career in creative industries. This is why the project has to date secured a public sector funding package worth £120m including £25m which we have put in to begin preparation of the site at Pallion on Sunderland Riverside. We remain confident that this will be a flagship site in a thriving industry for years to come.”
Former Tory Chancellor Jeremy Hunt and ex-Prime Minister Rishi Sunak visited Wearside in March 2024, when Mr Hunt described the Crown Works as “totally and utterly transformational” for the city and the wider region.
Current chancellor Rachel Reeves later confirmed the £25m funding in her Budget last October, while Labour culture secretary Lisa Nandy told the Local Democracy Reporting Service this year that the Government was “working very closely to make sure that moves at pace and that, with the investment we have put in, people start to see results very quickly”.
The Crown Works was named just last week by the Government this week as one of the key areas of the North East’s economic growth, as Labour announced its new industrial strategy for the nation. The Government rejected plans to build one of the UK’s biggest film and TV production studios near Maidenhead, in Berkshire, last month and said that there was “likely to be sufficient capacity within existing studio space” for the industry “for the immediate future”.
North East Screen chief executive Alison Gwynn said: “The region is 100% committed to studio development as part of their support for the wider creative industry. Production in the North East is up 131% in our region in the last three years and we recently saw the most eagerly awaited blockbuster 28 Years Later, which was shot almost entirely in our region, showcase not only some outstanding locations, but also some epic scenes created here in our alternative studio space.
“We are now excited to be looking for the right investor for the next stage of our region’s growth. The North East has never been in a better position to make the most of these exciting opportunities.”
Cain International have been contacted for comment.
A spokesperson for Fulwell Entertainment commented: “Fulwell Entertainment remains committed to working with the council to find appropriate private funding, complementing the combined NE Authority and wider government funding needed to make these world class production studios a reality.”