Stewart Milne Group selling off housebuilding arm after decision by founder to retire

Stewart Milne Group is selling off its housebuilding arm, following the decision by its eponymous founder and main shareholder to retire – who says “the time is right to step back from the business”.

The group, which was founded nearly 50 years ago, explained that it is putting the division up for sale having decided to capitalise on the current robust performance of homes’ sales and positive market conditions. It comes after it sold its timber frame business to focus on housebuilding in its core markets in Scotland and North-west England.

The independent housebuilding group – one of the largest in Scotland – says it has delivered one of its best-ever financial performances for the year ending October 31, 2021, driven by strong demand for its family homes, but believes major investment is required, particularly in its strategic land bank, to create “high-margin development” opportunities.

It added that its board carefully considered all options with its advisers and came to the unanimous conclusion to investigate a potential sale. EY has been appointed financial adviser to the group in this process.

Stewart Milne Group chief executive Stuart MacGregor said: “We anticipate attracting a high level of interest from potential buyers who will invest in order to capitalise on the strength of our business and the buoyancy of the current homes market.

“We have one of the strongest sales pipelines in our history and anticipate generating significant sales over the next two years… Stewart Milne Group presents a compelling proposition.”

Mr Milne, who is chairman of the group and on the board of directors at Aberdeen FC, said: “The unprecedented events of the last two years have forced many to re-evaluate and, after considerable soul-searching, I have decided that the time is right to step back from the business I founded to prioritise my time for family, friends and other ventures I want to pursue.

The group's founder Stewart Milne says that 'after considerable soul-searching, I have decided that the time is right to step back from the business'. Picture: Graham Dargie.

“In the last 18 months, we’ve significantly strengthened the business with major efficiencies and our new homes range. We are superbly placed to capitalise on the favourable market conditions and demand, which are set to continue in the near-term.”

Stewart Milne Group has offices in Aberdeen, Edinburgh, Glasgow and Manchester, and around 20 developments are currently at various stages across Scotland and North-west England, including Dargavel Village, Shawfair, Haddington, and East Linton.

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