Bancon Group has secured a £25.5million banking facility with Santander which will allow the independent Aberdeenshire housebuilder and construction group to continue to invest in opportunities in its key markets.
Santander became Bancon Group’s primary funder in 2014 and this new three year deal confirms the bank’s confidence in the new management team and in the Aberdeen market.
John Irvine, Chief Executive of Bancon Group, said: “This new facility underscores Santander’s confidence in our strategy and the opportunities we are pursuing in the local market and further afield. Our management team has built an excellent relationship with Santander and this new deal provides a strong foundation to deliver our plans, which take recognition of the current economic climate in the North East of Scotland
“There is no doubt that the Aberdeen housing market is depressed and, like all housebuilders in the region, we are feeling the impact of that to some extent. However, there are still opportunities for the right developments as demonstrated by our site launch at Oaklands, Banchory where the first phase has just sold out in three weeks, with ongoing strong interest in future releases.
“In addition our other sectors continue to show good levels of activity across Scotland and the North of England as evidenced by recent significant contract wins in our construction and timberframe businesses.”
Bancon Group embarked on a five year growth strategy in 2015 with Mr Irvine’s appointment and has completed a restructure across the group and made several senior appointments to strengthen the management team. By obtaining appropriate funding the group feels it is in a strong position to deliver that growth.
Santander said it was pleased to have granted a three year committed facility to the Bancon Group.