Crown Works Studios: Fulwell Entertainment chief reacts to funding boost to kickstart scaled-back vision

North East mayor Kim McGuinness announced a £38.5 million investment package on Monday that will allow construction to start on the Pallion film and TV studios this summer, with the aim of it being completed by the end of 2027.

Mr Pearlman’s Fulwell 73 production company was behind the grand vision for a 19-stage studio complex on the banks of the Wear, but main financiers Cain International pulled out of that £450 million project last year.

The latest plans will see just one new studio built, plus a refurbishment of the Doxford Printworks building, with the hope that the publicly-funded first phase of development could attract further investment that would allow it to be expanded over time.

Mr Pearlman, CEO of Fulwell Entertainment, confirmed that his company is “not operationally involved” in the smaller, redrawn version of the Crown Works.

But he said the firm, behind the Sunderland Til I Die Netflix series, was still “committed to bringing production to the North East”.

He also urged that the region’s ambition should be to ultimately deliver a much larger development that “genuinely shifts economic gravity northwards and embeds the screen sector as a permanent pillar of the regional economy”.

A report due to be presented to the North East Combined Authority cabinet next week said that the original model of a bigger, private sector-led studio scheme was “no longer considered viable” and that public funding needed to play a more “fundamental role” to ensure something could go ahead.

Posting on LinkedIn, Mr Pearlman said: “There are moments in a region’s journey that matter, not because they are the finish line, but because they represent hope, forward movement and the potential for a better future. Today’s announcement from Sunderland City Council and the North East Combined Authority that Phase 1 of Crown Works Studios will proceed (with 2 buildings) is one of those moments.”

He added: “As the project moves into its delivery phase, responsibility now sits with Sunderland City Council and the North East Combined Authority.

“While Fulwell is not operationally involved, we remain committed to bringing production to the North East, supporting regional talent and strengthening the creative ecosystem.

“What excites me most though is the bigger picture.

“Across Sunderland and the wider region we are seeing renewed confidence, in advanced manufacturing, automotive, sport, music, culture and now screen infrastructure. The fundamentals are strong: talent, work ethic, space, affordability, pride and growing connectivity. The upside is enormous if ambition and execution align.

“Two buildings can be an important foundation. The long-term prize, however, is scale, building something that genuinely shifts economic gravity northwards and embeds the screen sector as a permanent pillar of the regional economy. The North East’s potential is beyond question. The task ahead is to realise it, fully and at scale.”

The £38.5 million package includes a previously-announced £25 million originally offered by the Government in 2024 as part of the North East’s trailblazer devolution deal and subsequently reconfirmed by Chancellor Rachel Reeves.

There will be a further £11 million of “repayable funding” given to Sunderland City Council and operational revenue support of £500,000 per year for five years from the mayor’s office, to help secure a private sector partner to run the studios.

Sunderland City Council hired real estate firm CBRE to find new private investors for the Crown Works, but none have yet been announced.