Campion Homes, the family-owned housebuilder, has received a multi-million pound investment from Business Growth Fund to accelerate its building programme. The business plans to build 700 new private residential and affordable homes over the next five years.
Founded by Pete Bell, the Dunfermline-based company has built more than 1500 homes across Fife, the Lothians, Clackmannanshire and Perth & Kinross since 1989.
Campion has weathered the fluctuations in the housing market during the past decade, maintaining profitability throughout and building a strong pipeline of land for development, and as yet sees no headwinds from the economic uncertainties.
Mr Bell, chairman and managing director, commented: “We sold two houses yesterday, we are a smallish company and we have not noticed any difference. I’m encouraged by the fact that mortgage rates are liable to go down, that should help.”
But he cautioned: “Confidence has a great deal to do with it, if people think their jobs are secure they buy houses.”
The company is currently selling at three private developments in Fife at Springfield, Leven and Dunfermline with future developments in the pipeline at Leven, Cuparmuir and Dairsie.
Mr Bell said the long-term loan would enable Campion to ramp up its programme. “Half of our business is building affordable houses for councils and housing associations, the investment will let us expand our private housing side which we cut back during the recession.”
Mike Stansfield, former chief executive of national builder David Wilson Homes, has been appointed by Campion Homes as a non-executive director following an introduction made by Business Growth Fund, while BGF’s Patrick Graham will also join the board.
Campion has worked with public housing authorities in East Central Scotland for more than 26 years and expects an increase in build programmes following the Scottish Government’s announcement of plans to build 50,000 new affordable homes during the current parliament.
Mr Bell said: “There is a constant need for new affordable housing, and we have a good forward stream of projects.”
The management team includes private homes director Marjorie Scott, commercial director Alan Chalmers, construction director Dougie Herd and finance director Susan Jackson.
Mr Bell added: “There has been significant demand for our recent developments and our pipeline is strong. We have chosen to take on a funding partner in order to accelerate our growth opportunities. This investment will allow us to meet the increasing demand quickly without compromising our quality and delivery.”
On the loan funding he said: “It is better than going to the banks. We explored other funding options but BGF is the right fit for our business as a flexible, long-term and non-controlling funding partner.”
Mr Graham said: “The team has built a fantastic business, one that is ambitious and has solid foundations. Our funding is unlocking a clear growth opportunity, underpinned by a quality land bank in a strong market and a team that has significant experience in housing development.”
BGF's previous Scottish investments include Stevenswood, Duncan & Todd, Keenan Recycling and M Squared Lasers.
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