Barratt buys land specialist for £250m

Barratt has paid £250m for a company which finds land suitable for development before selling it on for housing.

The housebuilder said its deal for Cheshire-based Gladman would “significantly enhance[e] Barratt’s strategic land credentials”.

Gladman, which was set up in 1987 and employs 91 people, finds land, shells out for the costs associated with planning permission before selling it on to developers and housing associations with the firm taking a cut from the sale.

Barratt said the firm will operate as a standalone business and will continue to find land for third parties – as well as its new owner.

In its last financial year, for the 12 months to March 2021, Gladman agreed sales of 2,796 plots on 18 sites to housebuilders and housing associations. It turned in a pre-tax profit of £6.9m. Before the pandemic struck, average annual sales in the three years to March 2019 were £52.5m.

Gladman’s current portfolio comprises 406 potential sites with an average site size of 242 plots. Barratt said it will deliver an incremental 500 home completions per annum for the firm from 2025.

Barratt COO and deputy chief executive Steven Boyes said: “Barratt has built a reputation for a disciplined and competitive approach to acquiring land and Gladman’s strong credentials in identifying attractive land and promoting sites through the planning process will be an important addition to the group.”

Barratt is due to unveil its results for the six months to December 2021 next week.