At least 250 jobs are being brought to York as retirement homes builder McCarthy & Stone sets up its North-East division in the city.

The construction and servicing jobs, part of a £10 million investment, bring a fresh boost to York's employment prospects.

They also come within weeks of credit card insurance company CPP's decision to create hundreds of jobs in the city.

McCarthy & Stone's new regional headquarters at Lysander House, Clifton Moor, becomes operational in September and will be responsible for an area stretching from Tyneside to Lincoln.

The company's choice was greeted with delight today by Paul Murphy, chief executive of York's Inward Investment Board.

He said: "It's absolutely brilliant news and confirms yet again York's increasing reputation as a strategic location for modern businesses with operations across the UK.

"All the agents and local developers are giving out the message that York is one of the up and coming places in the commercial property market."

Tony Bennett, assistant director of economic development for the City of York Council, added: "It is the kind of quality company we want to see located in the city, and further enhances York's position as a headquarters for regional, national or international companies."

Keith Lovelock, chief executive of McCarthy & Stone, today told why his company chose the city.

"York is a very good spot to cover the east of the Pennines," he said. "There is a good demand from customers for our product in this region and the demography continues to be favourable."

Company chairman John McCarthy said of the expansion: "The decision has now been taken to invest in two regions, the North-East, which will soon be operational, and the western region, where we are establishing an office."

Bournemouth-based McCarthy & Stone posted a 33 per cent increase in pre-tax profit from £9.1 million to £12.1 million for the six months ended February 28, 1999. Turnover rose from £41 million to £51.7 million - a 26 per cent increase.

The company, set up in 1963 to build houses, shops and offices, is to start building retirement flats in Acomb on June 1. Its previous office in York closed several years ago.

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