Bancon secures £25m facility

North-east construction group Bancon has secured a £25.5million banking facility that will help it overcome the “depressed” marketplace in the region and target growth opportunities.

It has extended its relationship with existing lender Santander. Bancon switched to the bank in 2014 after its previous lender, National Australia Bank, forced it to refinance. The Australian bank, the former owner of Clydesdale and Yorkshire banks, had divested its UK property lending in the wake of the banking crisis.

John Irvine, chief executive of Bancon, said the extension would give the firm a “strong foundation” while acknowledging “the current economic

“There are still opportunities for the right developments”

climate in the north-east of Scotland”.

He said: “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.

“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 timber frame businesses.”