Major announcement as Crown Works Film Studios construction set to get underway thanks to new funding
Construction of the first phase of the Crown Works Film Studios is set to get underway this summer after the North East mayor Kim McGuinness today (March 9) confirmed £38.5m of new funding for the first stage of the development.
There was major disappointment in June (2025) when the studios main backers, financiers Cain International, pulled out of the development.
The Government has provided an initial £25m cash injection whilst in October (2025), Sunderland City Council announced that global real estate service advisor CBRE were appointed to spearhead the search for new private investors.
Whilst the current level of investment remains a long way short of the of the £450m original estimated cost of the development on the 80-acre site on the banks of the River Wear, the completion of “phase one” will still establish the opening of what would be one of the largest film studios in the North by next year (2027).
The investment would see Construction of Phase 1 of Crown Works set to begin in July (2026) with the Mayor providing a total package of more than £38m, including £11m recyclable funding, and operational revenue support of £500k per year for five years.
Ms McGuinness also reconfirmed £25m of Government funding as part of the Devolution Deal funding which established the North East mayor.
The new £38m investment is part of a £104m funding package package to “turbocharge the region’s creative industries driving new jobs and opportunities for local people”.
The package includes £24m to create a “new 12,500-15,000 seat arena to on Gateshead Quays to rival venues such as Manchester, Glasgow and London, as well as the creation of a new open-air performance space and urban park”.
North East Mayor, Kim McGuinness said: “I promised to back Crown Works Studios in Sunderland, and we’re rolling up our sleeves and getting it done - sending a strong message of the scale and opportunity for more investment in our creative industries.
“With this investment, we will bring blockbuster projects to the banks of the Wear, telling stories from our region and beyond, and showing local people that if you have a creative dream, you don’t have to move to London. The industry and the opportunities are here.
“I’m putting culture and creativity at the centre of the region’s plans for jobs, creating opportunities for working class creatives, like local filmmakers, actors and all of the careers behind the scenes, like electricians, set designers and make-up artists.”
Crown Works Studio would be the largest in the North when it opens at the end of 2027, totalling 125,000 sq ft of flexible studio space across a new Studio One space alongside the transformation of the existing Doxford Printworks building.
The Mayor hopes the phase one development will act as a catalyst for private sector backing and further future development of the site beside the River Wear.
Sunderland City Council leader Cllr Michael said the funding proposals, that will allow the council to build phase one of Crown Works Growth Zone, represented a momentous step forward for the city and for creative industries across the North East, while also creating jobs and opportunities for a wider range of people and businesses.
He said: “We’re getting this done – for the people of Sunderland and the North East. This is a huge moment, as we turn a transformational vision into reality.
“I am thrilled that the North East Mayor is backing us in our bid to unlock the potential of Crown Works Growth Zone and establish Sunderland as a TV and film production hub, an opportunity that will unlock significant benefits for the region’s people and businesses.
“Sunderland has led from the front and made the case strongly for support to realise our vision. This backing is the product of strong and positive partnership-working between local, regional and national government, with all of us working in lockstep to deliver a game-changing development for Sunderland, the North East, and for UK Plc.
“From joiners, electricians and painter and decorators, who will create sets for TV and film, to data wranglers and digital creators, and forklift drivers to sound and lighting engineers, this studio development will bring with it opportunities for all kinds of people and professions. This is about unleashing the immense potential of our region.”
The approach is backed by Alison Gwynn, chief executive of North East Screen, the screen development agency for the North East, which has helped drive the growth of the sector in recent years.
Alison said: “The evidence is clear: the North East has undergone a remarkable shift in TV and film production, and we’re now firmly on the map as a serious, competitive alternative to established hubs elsewhere in the UK.
“What sets our region apart is what we have to offer: stunning coastlines, dramatic countryside, vibrant cities, characterful rural communities, and talented crew. It’s all here, and productions know it. We’re also seeing more and more skilled people choosing to build their careers here, which is exactly what the industry needs to thrive.
“Crown Works is a game-changing opportunity for our region, and I’m absolutely delighted to see this level of backing behind it. We’re already talking to streamers and major producers who are excited about the potential of this space when it opens, and this investment sends a powerful signal that the North East is ready to deliver.”
David Parfitt, chair of North East Screen and who produced global blockbuster Shakespeare in Love, said: “This is a huge moment for Sunderland, and I am delighted to see the Combined Authority throw its weight behind studios that will put some firepower behind creative industries in the North East.
“Supported by North East Screen, there has been a real step change in production in the North East over the last four years, and we know there is demand for screen facilities here that Crown Works will address.”
The package of investments is set to be considered by the North East Combined Authority Cabinet next week. The meeting will hear that the creative industries is among the fastest growing sectors in the UK, with the North East outperforming all other English regions in recent year.