Firm behind 3,000-home Aberdeen community in administration

The Countesswells community is growing

The company behind the development of a new 3,000-home community on the outskirts of Aberdeen has gone into administration.

Countesswells Development Ltd (CDL) - owned by Stewart Milne Group - was managing the emerging community, which got planning permission in 2014.

Hundreds of homes have been built.

CDL blamed the oil and gas downturn and coronavirus pandemic for the administration move, but said it firmly believed in the future of the project.

A UK government guarantee for private sector lending for the project was previously made.

The Treasury said it regretted the administration but would "stand behind the guarantee that supported the development".

The site is divided between a number of housebuilders.

• Approval for 3,000 Aberdeen homes

Administrators FRP Advisory said the "immediate priority" was to finalise current construction, including the completion of affordable housing projects.

Work started in October on a £17m primary school and nursery, due for completion in 2023.

'Ensure vision is realised'

A number of commercial units have also been built or are currently under construction.

CDL said it was "extremely disappointed" about the administration.

"Countesswells undoubtedly suffered from the seismic downturn in the oil and gas industry which began in 2015, with local property prices dropping by 30%", a statement said.

"Furthermore, the disruption caused by the pandemic has undoubtedly taken its toll.

"We firmly believe in the future of the project and will, of course, co-operate fully with the administrators to help ensure that the vision, which many people share for Countesswells, is realised."

Local councillor Martin Greig described the move as "deeply troubling" news and said it was vital that residents were given reassurances.