A UK Government guarantee of £86 million has signalled the start of a £800 million infrastructure project in Aberdeen.

Construction on the Countesswell development project will be carried out by the Stewart Milne Group and is due to begin next month.

It will comprise of 3,000 homes along with infrastructure including schools, informal and formal parks, leisure and healthcare facilities.

The scheme will be delivered on a phased basis over 15 years and will create around 1,000 construction jobs.

Scotland Office Minister Andrew Dunlop said the UK Government's guarantee was a 'vote of confidence' in the North East of Scotland.


Speaking in Aberdeen, Mr Dunlop said: "The UK Government is offering this guarantee to allow this major Aberdeen project to go ahead. This is a great example of partnership working where the government can unlock the capital and the potential of the development."

John Slater, Group MD of Homes at Stewart Milne, added: "We have worked for many years to bring Countesswells forward and the 3000 new homes will play a major part in meeting the housing needs of the city and the aspirations of the local community.

"Countesswells is an important project that will deliver a vibrant new community for Aberdeen that will include 3 new schools, medical facilities, leisure, retail, commercial & business accommodation and a wide range of homes, from first time buyer apartments and young family homes to townhouses and executive villas, all contributing to Aberdeen's attractiveness as a place in which to live and work."

Planning permission in principle for Countesswells was granted by Aberdeen City Council in October 2014.

Mobilisation and compound facility works will start this month.

(LM)