Chief executive Graeme Carling, who is one of Scotland’s largest private landlords through Carling Property Group, said the move would complement his knowledge of the residential sector.

The housing division of McGill & Co Limited followed its parent company into administration in February.

Mr Carling said the company planned to specialise in the conversion of commercial properties into residential units.

He added: “McGill has a fantastic reputation as a quality contractor, which was one of the main reasons we acquired the company. I understand the private rented sector in Scotland and also the high demand for quality residential accommodation. Whilst most builders opt to focus on new build property, we understand the need for different types of accommodation and will focus primarily on conversion projects which we have been doing for the last 10 years throughout Scotland.

“To drive the business forward we always planned on doing more property development work and McGill Homes will become the group’s development company with McGill operating as the main contractor on any future developments. We are looking at sites at the moment, and should progress at least one in the next few days.”

McGill chairman, Syd Fudge OBE, added: “In the few short weeks since acquiring McGill our board of directors have worked quickly to push the business forward. McGill Homes will allow the company to broaden its scope and move into what will be a lucrative market for us. The launch of McGill Homes connects property development with a quality contractor and positions us to take advantage of the opportunities that currently exist around the country.”