Bancon Construction and the Lombard Merton Trust are leading the project to demolish Peregrine House, for the delivery of 45 affordable houses, The Press and Journal (Aberdeen and Aberdeenshire) reports. 

In November, an application for the Mosscroft Avenue development went before the Garioch area committee, which resulted in councillors refusing it. But developers appealed against the decision to the Scottish Government.

Since Stewart Milne Group went into administration in January 2024, Peregrine House has been sitting empty. 

Not too long afterwards, it was put on the market in the anticipation that another firm would take it on. 

However, with no one coming forward, Bancon took over the site with the intention of building the new homes for the housing association Hillcrest.

A combination of one to five-bedroom properties would be built such as flats and townhouses, according to their plan.

However, councillors felt the scheme was located in the wrong area, stating it was “in the middle of an industrial estate”. Additionally, councillors were also concerned that the noise from surrounding businesses, will mean that residents will not open their windows.

But a noise impact assessment showed that commercial noise levels would have a “low impact” and other strategies could be implemented to decrease sound, including a 3.9m fence and a “closed window” strategy, in which residents are told to keep their windows closed.

Committee members also felt the site did not have sufficient open space and would necessitate felling trees.

Despite concerns, Aberdeenshire Council planners had recommended the proposal be granted and claimed it would help tackle the housing crisis declared by the Scottish Government in 2024.

But at the Garioch area committee in November 2025, the application was refused by 11 to two.

Scottish Government reporter Sarah Foster had been assigned to consider the appeal. Foster visited the site during April to gain a better understanding of the area and the effect it would have on the new properties. Foster overturned the refusal and approved the application.

In her decision, Foster said: “I conclude that the proposed development accords overall with the relevant provisions of the development plan.

“There are no material considerations which would still justify refusing to grant planning permission.”

Foster added: “I have considered all the other matters raised, but there are none which would lead me to alter my conclusions.”