Member Article

Cussins secures £12 million to build 300 homes and create 500 jobs

North East house builder Cussins has received a £5 million investment from BGF (Business Growth Fund), as well as a £7 million debt facility from Lloyds Bank Commercial Banking.

The money will be used to support the acquisition of land and the development of up to 300 new houses per year over the next four years, generating 500 jobs.

Peter Cussins, executive chairman, and his son Jabin, chief executive, will remain majority shareholders in the Alnwick-headquartered business.

To support business growth, Cussins has appointed Mike Stansfield, former chief executive of David Wilson Homes, as non-executive chairman. Stansfield was introduced to Peter and Jabin Cussins by BGF.

Richard Taylor, investment director at BGF, will also join the board.

As part of the investment, the business has secured a £7 million debt facility from Lloyds Bank Commercial Banking. The Lloyds Bank team was led by Richard McEvoy.

Cussins is the third North East business backed by BGF, following a £7.5 million investment in J&B Recycling earlier this year and an £8 million investment in Wear Inns in 2012.

Jabin Cussins, chief executive, Cussins said: “A number of factors in the market have combined to make this an opportune time to grow the business. The investment from BGF alongside a significantly larger bank facility from Lloyds provides us with the ability to develop the large number of high quality sites we have in the pipeline.

“As a family run business, it was important that we found the right investor to partner with, and BGF’s long term investment approach, focused on growth, was an ideal fit for us.”

Richard Taylor, investment director, BGF said: “Peter and Jabin have a proven track record in the sector, a reputation for building outstanding homes and strong relationships with local landowners who are keen to make sure that the houses built on their land are a good fit with the local area. With BGF investment the business is well placed for growth to take advantage of the improved market dynamics in the sector”

The investment was managed by BGF by Richard Taylor and Chris Boyes.

This was posted in Bdaily's Members' News section by Ellen Forster .