Lender OakNorth deepens Scottish presence with £21m loan to Glasgow-based Ambassador Group to create 70-plus homes in West Lothian's Bangour Village

“Neobank” says Scotland is an “integral” part of its growth strategy.

A Glasgow-headquartered property and investment company is developing more than 70 homes in West Lothian, as part of a planned 1,000-property mixed-use site, after being bankrolled by a £21 million loan from an entrepreneur-focused lender scaling its presence in Scotland.

Ambassador Group is using the sum from “neobank” OakNorth to bring to life the properties at the historic Bangour Village as well as support ongoing infrastructure works. The units include 51 detached and semi-detached homes and 23 flats offering residents green spaces, as well as electric vehicle charging points. The OakNorth-funded homes will be part of the wider Bangour Village Estate, a 215-acre site previously home to the defunct Bangour Hospital set to consist of 998 homes, a primary school and nursery, and café/restaurant, as well as transport links to both Edinburgh and Glasgow.

Ambassador Group in 2020 struck a deal to buy Edinburgh’s Ocean Terminal, while developments on its books include Wallace Park in Wallyford and Forthview in South Queensferry. David Gaffney, Ambassador Group’s chief executive, commented: “We are delighted to announce the first release of handpicked homes at the spectacular Bangour Village Estate. Our work in partnership with the local community and key stakeholders has been vital towards the area’s successful transformation into a thriving new destination that can be enjoyed by residents, locals and visitors alike. After being impressed with OakNorth’s reputation for backing experienced and entrepreneurial housebuilders, they were the clear funder of choice… and we look forward to working with them again on future developments.”

Ambassador Group is using the sum from 'neobank' OakNorth to bring to life the properties at the historic Bangour Village. Picture: contributed.

OakNorth says it is for entrepreneurs by entrepreneurs, and has advised on in excess of £2 billion of UK property transactions to date, with a development pipeline of more than 2,500 homes. Last year it debuted an office in Glasgow’s George Square to serve as a springboard for Scottish growth, and predicted that it could in the following 18 months, emulate or even exceed the almost £350m it had already lent to businesses in the region. Names on that list include boutique hotel brand House of Gods and the Waldorf Astoria Edinburgh as well as backing a £30m project to turn the landmark “People Make Glasgow” building into a major tech hub.

Fraser McPhail, senior director of debt finance at OakNorth, has now said: “The Ambassador Group is a perfect example of the innovation and entrepreneurialism that’s on show within the UK’s real estate sector. The firm’s successful track record for delivering homes that are thoughtfully designed, energy efficient and have an industry leading specification speaks for itself and we’re thrilled to support its unique and iconic Bangour Village development.

"Scotland is an integral part of OakNorth’s growth strategy, and we continue to see a strong opportunity from businesses in the region looking to pursue their growth ambitions. Following the opening of our Glasgow office in summer last year, OakNorth is ready to step up to the plate and support businesses in Scotland at a time when other lenders may be unwilling or unable to.”