A once-contaminated gas-processing site in Scarborough has been bought by the Scarborough Building Society.

The former gas-processing site in Scarborough, outlined above, which has been sold

The rapidly-expanding building society has struck a deal with the property division of BG plc which earlier this year spent £400,000 on an improvement programme to remove the legacy of local contamination on the six and a half acre site in Seamer Road.

Both sides are coy about disclosing the exact sale price, describing it as "commercially sensitive," but the deal is thought to be worth at least £650,000.

Town gas - or coal gas - production began at Seamer Road in 1875 and by 1880 was operating four gasholders, supplying much of the town until 1968 when North Sea gas put an end to production. Some buildings were retained with a new main depot built in 1983 and these are part of the purchase.

The land and empty buildings will complement the Scarborough Building Society's existing premises at Prospect House in Scalby Road, Scarborough, which were revamped two years ago.

John Carrier, the Society's chief executive, said: "The site is ideal for our purposes as the buildings there offer an immediate opportunity of securing 19,000 sq ft of office space capable of accommodating up to 200 staff.

"At the moment its primary function will be to give us space we can use on a contingency basis, which makes extremely good practice for any major organisation such as ours.

"Building societies need to be able to operate in the event of any unexpected circumstances arising and these premises provide that contingency for us. This extra space will help give us increased security and assured services to our 150,000 members throughout the UK."

Over the course of this year his building society had recorded the fastest growth of any in Britain, with assets increasing by 27 per cent. The acquisition was "fully in line with our planned and sustained expansion of resources and facilities for our members and represents a further investment by the society in its home town operating base," he said.

Charlie Connoly, of BG property division, said the investment to improve the site had been fully justified. "It shows how our surplus sites can be cleaned up and make a productive contribution to the local economy."

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