Stewart Milne Group has secured a £185 million funding package as the firm looks to tap into a strong housing market and extend its geographical reach.
The £185 million banking facility has been put in place as the Aberdeen-based builder embarks on a number of new residential developments, increasing its presence across Scotland and the north-west of England. It is also ramping up its timber frame systems business amid rising demand from housebuilders and contractors for offsite construction.
The new banking package has been agreed with Bank of Scotland and will form a key element in Stewart Milne’s long-term growth strategy.
Glenn Allison, the group’s chief executive, said: “This new facility, which provides us with funding through to December 2019, enables the delivery of our longer-term strategy and gives us the scope to plan ahead and continue to grow in our existing core markets.
“We have recently launched six new developments across Scotland and north-west England, with further new developments in the pipeline.
“The government help to buy schemes in England and Scotland have played an important role in helping consumers to buy affordably and will continue to play a role in the coming year as we build on our strong working relationships with mortgage lenders.”
The firm was founded by its eponymous chairman in 1975 and has an annual turnover of about £220m with some 850 employees. It has a long established relationship with Bank of Scotland.