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LONDON-Energy firm npower has backed out of a prior commitment to lease 110,000 square feet at developer Terrace Hill’s Baltic Business Quarter development in Gateshead. As a result, work on that portion of the multi-phase business park, which is eventually planned at 1.5 million square feet, is postponed until the developer finds another tenant.

Npower had agreed to lease the space in three buildings with an option to expand to an additional 80,000 square feet at a rate of £17 ($24.40) per square foot. Tenants so far at Baltic Business Quarter are a 160,000-square-foot building occupied by Gateshead College and a 19,500-square-foot with Open University as its tenant.

“Our original strategy for the Baltic Business Quarter remains firmly in place and we continue to see ongoing good levels of interest from local, national and international occupiers,” says Phillip Leech, chief executive of locally based Terrace Hill, in a statement.

Meanwhile, Terrance Hill had better luck with two other developments. It got approval government approval for two retail developments anchored by grocery Sainsbury’s, one in Bishop Auckland and one in Helston.

The Bishop Auckland project will total 150,000 square feet, with a 90,000-square-foot Sainsbury’s, a 58,000 square feet of entertainment space, two restaurants and a new stadium for the Bishop Auckland Football Club. The Helston development consists of a 55,000-square-foot stand-alone store.

Terrace Hill, which has commercial real estate across the country, most of which is in the office sector, has 882,155 square feet of development in its pipeline.

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