The regeneration of an iconic Sunderland industrial site is moving into its final phase, as work commences on two new retail units.
Preparatory works have begun ahead of the development of drive-thru units for Greggs and Starbucks on the former Dewhirst site at Pennywell Industrial Estate.
Led by UK Land Estates, which owns the 7-acre site, STP Construction has been appointed as main contractor on the development and began work on the scheme this month [November 2025].
The development marks the final phase of the regeneration of the former Dewhirst site, with Aldi, Wickes and KFC having already moved to the site.
Dewhirst, a clothing manufacturer with roots dating back to the 19th century, had a significant presence in Sunderland, particularly in the late 20th century.
The company employed hundreds of people at its peak, before its Leechmere site closed in 2002 and its Pennywell factory closed a year later.
The site then stood largely vacant until a few years ago when UK Land Estates was granted planning permission in 2022 to develop ‘a new gateway’ to the city.
Tim Witty, development director at UK Land Estates, said: “It’s fantastic to see preparatory works get underway on this final phase of development.
“UK Land Estates has a track record of regenerating brownfield sites across the region, and this is a fine example of how we are continuing to do just that.
“Having stood empty for the best part of 20 years, the site is now revitalised, providing new retail facilities in the city while also creating jobs for local people.”
The construction of the two units at Pennywell will see UK Land Estates’ total investment into the 7-acre site exceed £10million.
This latest investment is part of a wider £35million investment drive which during this financial year, will see the developer construct over 270,000sq ft of new, Grade A industrial and warehousing space and several retail outlets across the North East.
Tim added: “The North East has a huge dearth of available, high-quality industrial and warehousing space, and we have witnessed this first-hand.
“Over recent years, we’ve delivered several major industrial schemes, the majority of which have been snapped up prior to completion.
“And with this, there is naturally also a demand for more retail units, like those we’re bringing forward here at Pennywell.
“That is why we are continuing to invest in the region, with over £35m being spent on bringing to market a flurry of new developments and refurbishing existing stock, and it doesn’t stop there.
“Should the right opportunities present themselves, we are willing and able to develop even more sites, so long as the conditions are right, so hopefully there is even more to come.”
