NE Scotland, Orkney & Shetland

Aberdeen City Council and Stewart Milne Group agree Westhill land settlement

An out-of-court deal has been struck by Aberdeen City Council and housebuilder Stewart Milne Group over a long-running dispute over the sale of land.

Stewart Milne Group paid Aberdeen City Council more than £350,000 for the plot in Westhill in 2004.

The council was entitled to receive a share of profits if it was sold on, and the case ended up in the courts.

Both organisations have agreed a settlement of £1m.

The authority argued the plot was hugely undervalued when it was resold in 2006 for almost £500,000.

Fair and reasonable

The Court of Session later ruled that it had a market value of more than £5.5m and the Stewart Milne Group was ordered to pay the local authority £1.7m.

It appealed against that ruling, but the Supreme Court ruled in favour of the council.

The settlement is to be paid by the end of January.

Aberdeen City Council described the offer as fair and reasonable.

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