An update on the future of Innovation Park Medway (IPM)
Medway Council’s Cabinet has approved the proposals for the future of the 2 sites at IPM.
On Tuesday 11 March 2025, Medway’s Cabinet approved the recommendations for the development plans for both the northern and southern sites. The agreed development options coming forward are as follows:
Northern site
For the northern site (the largest site), the preferred option that will be taken forward will be for development of a mix of industrial and mid-tech (office and research) commercial space.
Prior to the development taking place at the northern site, Medway’s Cabinet has also agreed to plans to lease the land to BAE Systems until the end of 2028 to support its multi-million-pound upgrade at its Rochester facilities. The land will be used by BAE Systems to temporarily relocate their existing staff park and create a temporary staff car park while facilitating the work on their new state-of-the-art factory later this year.
The decision ensures the northern site will be used over the next few years. This is while work takes place to appoint a development partner and both create and submit a planning application for a mix of industrial and mid-tech (office and research) commercial space for the northern site.
Southern site
For the southern site, we're looking to take forward the development of a viable care home and retirement units. Mid-tech commercial space will also be considered while further market testing for a care home is carried out.
The background
We took a decision in February 2024 to pause the development plans at IPM. The previous plans included the aspiration for high-quality, innovative commercial spaces for businesses working in technology, precision engineering, manufacturing and support services.
The commercial market has changed quite significantly in the current financial climate and in the wake of coronavirus and the way businesses now work. We took the opportunity to pause and review the best long-term opportunities for IPM to ensure the most sustainable options would move forward for both sites while also reducing the financial risk to the council.
Last year, officers appointed a consultancy to undertake the options assessments for the northern and southern sites alongside analysis of the best delivery mechanism. This has allowed us to present the most viable, sustainable options to Cabinet.
The benefits of this new development plan
Five reasons why there’s a bright future ahead for IPM:
Having a development partner
A development partner provides us with much-valued commercial expertise.
This approach has been carried out for our flagship regeneration project at Rochester Riverside, which has seen us appoint 2 development partners: Countryside Properties and Hyde Housing. The partners have helped us to deliver:
- over 500 homes
- a new school
- roads and pathway infrastructure
- a hotel
- a convenience store
- a riverside walk.
We hope to replicate the commercial opportunities and results a development partner can bring to IPM.
Cost saving
These approved options to develop the southern and northern sites present positive land values and a significant cost saving to the council of around £25 million. This is compared to the previous plans that were in place prior to last year’s pause, significantly reducing the financial risk to the council.
A budget of just over £2 million will allow us to deliver on the approved proposals for both sites.
Removing the Local Development Order (LDO)
The development at IPM was guided under the previous programme by a LDO, Design Guide and Illustrative Masterplan.
Following the Cabinet decision, we're looking to remove the LDO during the next 12 months. This is to ensure that this does not hinder future delivery, reflecting the changing financial market and how businesses now operate, while providing a clearer pathway to development on the new approved options for both sites.
Supporting local business
We remain committed to supporting local businesses grow their workforce to support our local economy. The interim lease of the northern site to BAE Systems enables them to invest £220 million to develop a new state-of-the-art factory on its site north of Rochester Airport. The significant renovation is expected to create 300 jobs over the next 5 years.
Sustainable development
The approved options for the northern and southern sites will ensure we have the best long-term development coming forward over the next few years, while we also support a local business in BAE Systems in growing their workforce to further boost our local economy.
We can now work through our plans for appointing development partners and the creation of the supporting planning applications.
Infrastructure in place
Completed infrastructure works at the northern site include the creation of:
- access roads
- bus stops
- footpaths and cycleways
- drainage
- utilities
- lighting
- landscaping
- street furniture.
These lay the foundations for the next stage of the development.
The southern site has also seen the installation of:
- lighting
- utilities
- landscaping.
Power works are set to be completed shortly.