Sunderland City Council has signed a Pre-Development agreement with Muse for the regeneration of the Sunniside area of the city. Muse will be supported by supply chain partners through the ECF partnership between Homes England, L&G and Muse.
The agreement builds on the Council’s Sunniside Place Strategy, launched in 2024, and the progress already made in the area, including the Nile + Villiers housing development and the National Esports Performance Campus.
The Pre-Development Agreement has been made possible through the Developer-Led Framework, which Pagabo manages on behalf of Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust.
Through the ECF partnership, Sunderland City Council and its partners will work together to shape the next phase of plans for Sunniside.
This will include exploring funding and delivery strategies to support proposals for the area, which forms part of the Riverside Sunderland Creative Mayoral Development Zone.
Sunderland City Council says that the Sunniside area presents a significant opportunity to bring more people, activity and investment into the city centre, and that the partnership will support its ambitions for the area.
The next phase of work will see a design team appointed by the partners to develop a comprehensive masterplan for Sunniside, supported by planning and technical specialists. This work will include identifying priority sites that can help build early momentum for the partnership.
Early indications suggest there is potential to deliver more than 1,000 homes across Sunniside, helping to create a new mixed-use neighbourhood with workspace, shops and community spaces. A key principle of the work will be integrating existing heritage assets and independent businesses into future plans, building on the area’s established strengths.
Councillor James Jackson, cabinet member for business, housing and regeneration at Sunderland City Council, said: “Sunniside has enormous potential and a critical role to play in the story of Sunderland. It is one of the most distinctive and culturally rich parts of our city centre and following the launch of the Place Strategy in 2024, we want to focus on addressing the challenges that have held the area back.”
“This partnership represents a significant step forward. By working with experienced partners like Muse and ECF, we can accelerate delivery of our place strategy to support the city’s economic prosperity by building new homes, strengthening local businesses and creating an exciting and creative neighbourhood that people want to be a part of.”
Sir Michael Lyons, chair of ECF, added: “Sunniside’s potential has long been recognised by the Council and the local community, and this next stage will be key to unlocking it. We are excited to help unlock the next chapter for a neighbourhood with a strong history of enterprise and creativity, as the city’s original business centre.”
“Sunderland City Council has already played a leading role in driving change, acting as a catalyst for regeneration. Following the signing of the Pre-Development Agreement, we will now work closely with the Council, North East Mayoral Strategic Authority and other partners to develop a comprehensive masterplan and establish the right approach to support the next phase.”
Feasibility work is expected to continue throughout 2026. Subject to outcomes, the Council and its partners will then look to move towards a full Development Agreement, enabling detailed funding and delivery proposals to come forward for key sites.
Jonathan Parker, development director at Pagabo, said: “This appointment demonstrates how the Developer-Led Framework can support complex regeneration projects, enabling Sunderland City Council and its partners to move forward with confidence and pace.”
