Work starts on new HQ for pipeline firm

Mark Burgin, of Stoford, with Kevin Johnson, of PII Pipelines. Picture by John Millard.
Mark Burgin, of Stoford, with Kevin Johnson, of PII Pipelines. Picture by John Millard.

Work has started on a new multi-million pound headquarters for a pipeline company.

The state-of-the-art two-storey building will be the new home for Cramlington-based PII Pipeline Solutions, a subsidiary of Baker Hughes, a GE company.

The construction, being led by Stoford Developments, will see a 74,110sq ft office and manufacturing unit comprising double height industrial space with car parking, service yards and landscaping to be built adjacent to the firm’s existing base.

Work will see the demolition of existing buildings to pave the way for the new unit, which is being constructed by Bowmer & Kirkland and forward funded by LXI Reit plc.

PII Pipeline Solutions’ regional manager Kevin Johnson said: “This new state-of-the-art facility positions us to continue developing new technology and deliver safe and quality services to our customers.”

Andy Kinnear, construction director at Bowmer & Kirkland, said: “We are both excited and delighted to have been awarded this high profile contract and look forward to successfully delivering this new facility for PII on behalf of Stoford Developments.”

Simon Lee, partner of LXi REIT Advisors Limited, said: “With a lease term certain of 20 years to the strong covenant of GE UK Group, this forward funded investment provides a secure, long term and RPI inflation-linked income for the company, with an attractive initial yield.

“BHGE’s commitment to the location is demonstrated by the extensive fit-out works it is funding and the fact that it has been based at this site for over 30 years.”

Gerard Ludlow, director at Birmingham-based Stoford, said: “This project represents a major investment in the Cramlington site and strengthens the presence of one of the region’s biggest employers.”

PII Pipeline Solutions is based on the North Nelson Industrial Estate, in Cramlington, which is an established and mixed-use business park which has attracted a number of significant occupiers, benefiting from excellent road, rail and air links.