North-east firm Chap Homes has described its move to take full control of a £12.5million luxury housing development in the north-east as a show of confidence in the region.
The Westhill firm is pressing ahead with construction of the third and fourth blocks of flats at Woodland Grove in Milltimber, Aberdeen, as the sole developer after buying out its previous partner, Bancon Group.
Bancon has decided to focus its efforts on major new developments in Maidencraig, Banchory and Inverurie.
The Milltimber development is being built on the 12-acre site of the former Tor-na-dee hospital.
Chap Homes said the third block comprised 18 two-bedroom flats and would be completed by the end of this month.
The firm, which is part of Chap Group, said seven of the properties had already been sold. The final block will feature 32 two-bedroom flats.
Chap Group joint managing director Douglas Thomson said the deal with Bancon represented “a significant commitment” by Chap Homes to the north-east housing market and reflected confidence in the region’s economy.
He added: “We are investing in a project with a proven track record of strong sales and opportunities for continued success.”
“Sites of this quality are very few and far between and from the outset it was vital that the development matched the location.
“That has been achieved in the initial phases and the same values will remain at the core of Woodland Grove moving forward.”
Chap Group, which employs more than 200 people, recently revealed plans to open a second concrete plant in Aberdeenshire.
It has invested nearly £700,000 in the ready-mix site in Belhelvie, which will supplement its other concrete facility at its Park quarry near Drumoak in Deeside.
The group, which turned over £37million in 2013-14, has civil engineering, commercial property and house building divisions, with Chap Homes working on houses in Aberdeen, Aberdeenshire and Inverness.