North East housebuilder Cussins is embarking on a 1,200-home building drive after receiving £12m in funding.
Cussins has received a £5m funding injection from the Business Growth Fund along with a £7m funding facility from Lloyds bank.
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.
Peter Cussins, executive chairman, and his son Jabin, chief executive, will remain majority shareholders in the Alnwick-headquartered business.
Cussins has appointed Mike Stansfield, former chief executive of David Wilson Homes, as non-executive chairman.
BGF investment director Richard Taylor will also joint he board.
Cussins is the third North East business backed by BGF, following a £7.5m investment in J&B Recycling earlier this year and an £8m investment in Wear Inns in 2012.
Jabin 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 larger bank facility from Lloyds provides us with the ability to significantly expand our development programme.
“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.”
Cavu Corporate Finance acted for Cussins, KPMG acted for BGF.
