Now Rock sells off new £100m offices

Aug 30 2008 by Graeme King, The Journal

NORTHERN Rock is to sell off its two new £100m office developments in the North East in a clear signal that the nationalised bank will have to live more cheaply in the future.

Both the 10-storey tower being built at the front of the bank’s Gosforth headquarters, and the Rainton Bridge buildings in Sunderland, are to be sold or leased out.

With executive chairman Ron Sandler confirming yesterday that Northern Rock would have just 4,500 staff as from 5pm last night – down from 6,000 a year ago – the organisation simply does not need all the high-specification space it has been building.

Three years ago the bank was boldly making plans to recruit thousands more staff over the coming years, with 1,000 of those to be accommodated in Gosforth, and 2,500 at the Rainton Bridge site. But that optimism has now been replaced by redundancy notices.

The tower is close to completion, and dominates the skyline in leafy Gosforth, casting a shadow over Northern Rock’s remaining buildings which stretch from Regent Farm Road all the way to Jubilee Road.

Meanwhile in Sunderland, the giant offices built for Northern Rock at Rainton Bridge stand empty, while the business park’s developer Goodman continues developing the rest of the site.

A statement from Northern Rock yesterday said: “The reduced size of the company means that it does not need as much office space as it currently occupies, or was projected to need.

“It has been decided that Northern Rock will seek to sell, or offer for rent, the new office space it is developing at Rainton Bridge and Gosforth.

“The company will retain its main sites in Gosforth and Doxford Park, Sunderland, as well as its local and national branch and sales network.”

Jim Johnston, managing director of Goodman’s UK Business Parks, said: “We are disappointed that Northern Rock will not be occupying the Rainton Bridge development, but obviously appreciate the factors which have led to this decision.

“We and our partners Sunderland City Council will work closely with Northern Rock to find alternative occupiers.”

Page 2: 1,300 made redundant turn up for the last day